Auto Insurance- What Affects Rates

Have you ever wondered by you pay vastly different auto insurance rates than someone else?  You could be driving the exact same vehicle as someone you know yet pay double, possibly triple, what he pays for coverage.  Here are some possible reasons why.

Age

Age affects auto insurance rates.  A sixteen year old will pay a lot more for automobile insurance than a fifty year old man.  Its deemed that the younger you are the less experienced and more reckless you are. All the numbers are based off statistics and they show that a younger person is more likely to make on-road mistakes than someone more advanced in years.  One great thing about “growing old” is that your insurance rates drop significantly.

Type of Vehicle

There are vehicles that are deemed more high risk and safer than others.  Again its all base on hard concrete numbers compiled over the last several decades.  Minivans will be cheaper to insure than a large SUV and a sports car will be way more expensive to insure than a Honda Accord.

Driving Record

People who do not speed, run red lights, run stop signs, get DUIs, and take defensive driving courses will pay less in auto insurance than people who do engage in those things.  Keep your driving record as clean as possible. One or two infractions will not hurt you but multiple ones will. Automotive insurance companies are able to pull up your driving record and see the number of tickets you have received over the last five to seven years.

Years With Same Auto Insurance Company

When you stay with the same company over the course of several years you can qualify for lower rates.  The industry is very competitive and each company spends millions of advertising dollars to get clients.  Its far easy for them to keep you than to replace you.  Many times you can lower your rate just by calling them and asking.  If you have been a long standing customer who pays on time then they will do their best to accommodate you.

Marital Status

This may not seem fair but married people pay less for auto insurance coverage.  They have more to loose and so risk less.  They will be more hesitant to spend, drive drunk, or behave in a reckless manner.  All this equals to the insurance companies a lesser chance that they will be involved in a collision.

These are the five main reasons why your insurance rates may be higher or lower than someone else.  Your age, vehicle type, driving record, years with your present insurance company, and marital status all play a part.  You can visit this site if you need auto insurance Vancouver Wa and need to start getting quotes.