5 Things that Affect Car Insurance Rates

​Last time you thought about buying a car did you consider the expenses that come with it? A car is an added responsibility. You need to gas it up, maintain it, and repair damages if there are any. Also, you need to pay tolls to pass through highways. A car is a big investment which is why you also need to buy insurance for it. Ever wonder how car insurance companies get their rates?

Many people think that car insurance is costly. While that might be true, it doesn’t have to be the case. There are ways that we can reduce our premiums, and that is through discounts. But before focusing on discounts we need to understand the factors that affect our insurance rates.

Your Vehicle
Insurers base car insurance premiums on the car you own. Often, they look into the potential costs of repairing or replacing your car when it gets into an accident. If your vehicle is expensive than the average car, you’ll have a higher premium.

Credit History
Credit history, or credit score, is a way to measure how responsible you are with your financial obligations. If you have a poor credit score, chances are you’ll be in for a higher premium. We have some carriers who don’t rely on credit score as much also so if you don’t have good credit give us a call because we can help.

Driving History
When you request a quote we’ll often check out your driving history. If we see that you’ve been involved in several accidents or you’ve violated some traffic rules you’re undoubtedly going to pay more.

Your Neighborhood
Some insurers charge higher premiums to those who live in densely populated areas. That’s probably because there are higher chances of accidents, vandalism, and theft. Thus, urban drivers pay more auto insurance coverage than rural drivers even if they own the same car.

Gender
Believe it or not, your gender affects your insurance rates. Kind of sexist, right? We know a lot of men who claim that they are better drivers, but they are actually riskier to insure. That’s because they are more likely to get a speeding ticket, get a DUI violation, and get involved in an accident. Thus, male drivers pay more on insurance than their female counterparts.

Based on those factors (although there are many others) you’ll better understand how your insurance premiums are calculated. From there, you can take the next step of finding the right discounts and carrier reduce your premiums. Just bear in mind that you shouldn’t compromise your coverage for lower rates.

At Robert Nichols Insurance Group, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (561) 406-6153 or Click Here to request a free quote.