What determines your car insurance rate
There are a variety of factors that go into determining what you will pay as a monthly premium for your car insurance. These factors all tell a story – how risky of a driver you are. The most common factors used by insurance companies are your age, your driving record, your marital status, how many children you have, and what kind of vehicle you drive. They will also take into consideration what you are going to be using the vehicle for and how many miles you will be driving each day in the vehicle.
The single most common factor that determines your insurance premiums is your age. It is widely known that older people are much less risky and aggressive when it comes to driving, and as such they receive much lower rates than younger people. After you pass the age of 25, your insurance rates decrease dramatically.
Another factor that weighs heavily in the equation of how much you’ll pay for car insurance is your driving record. A history of bad driving, accidents and traffic citations will surely increase your insurance premium because you are deemed a bad driver. It can take years for these convictions to go off your record, and until then you will be stuck paying very high insurance rates.
Other factors that go into calculating your insurance premiums are what you use the vehicle for and how many miles per day you drive. If you use the vehicle simply for commuting, you will have a lower insurance rate than someone who uses it for pleasure. Also, you will have a lower rate if you drive less miles per day. Other things insurance companies take into consideration are the type of vehicle you drive, your gender and your marital status.