Factors that Affect your Auto Insurance Premium Rates

Ever wondered why you, your spouse, your first born child and your neighbor pay different auto insurance premium rates? Also, why is it that one insurer will give you a high premium rate while another one goes a bit lower? If you’ve ever found yourself puzzled by this factors, then you’ll be glad to know that the auto insurance premium rate you are paying now isn’t just a random sum quoted by your insurer based on how affluent you look. Instead, it is a well-calculated sum which is based on various factors that insurers use to determine your risk factors. Some of these factors you can control and some while others you cannot, 

Age and Gender 

Age is one of the main factors that insurers use to determine the risk factor of anyone who seeks to be insured. Unfortunately, this is a factor that you have no control over. Drivers at the age of 25 and below often get hefty insurance premium rates as they are perceived by most insurers as reckless, hence causing their risk factor to be high. For instance, even though they only make up 15% of the general driving population, drivers at this age are often held accountable for 30% of auto accidents, thereby causing their insurance premium rates to skyrocket. Drivers at the age of 30 and above, however, get affordable rates as they are deemed to be more careful. Gender also affects these rates. Female drivers at the age of 25 and below are two times more likely to get affordable rates than their male counterparts as most insurers deem them as careful. However, as they age, the tables turn, and males get cheaper rates. Nevertheless, on average females pay less than males. 

Your Driving history 

Your performance on the road is yet another factor that determines whether you go home smiling or frowning. If you’ve had a history of being arrested, many tickets and violations and been involved in multiple accidents, then there is no doubt your premium rate will break your budget. On the other hand, if you have a clean driving history, then you’ll get a much affordable rate. Additionally, the number of years you have been on the road are also of the essence in determining your rate. Drivers who have been on the road are deemed more experienced thus less likely to cause accidents while those who are newbies are considered to have a high-risk factor, therefore, causing them to get expensive rates. Therefore while shopping for your auto insurance Easton pa be sure to keep all these factors in mind, and those that you can control, do something about them so you can get an affordable rate. 

Location 

Where you live is yet another uncontrollable factor that affects your premium rates. If you reside in a densely populated area where traffic is high, then you are more likely to get slapped with a high premium rate as the stakes of you getting into an accident are quite high and vice versa. Therefore, premiums are often high in big and metro cities where the traffic is on the upper side. Besides traffic levels, the regulations in your town also affect your premium rate. For instance, some states require drivers to have unlimited Personal injury protection coverage. In such states, drivers pay even higher premiums as the costs of this coverage are passed to the insurer. Also if you reside in an area prone to natural disasters such as wildfire, hailstorms, and floods or where crime rates are on the rise, then expect insurers to slap you with a hefty auto insurance premium rate. 

 

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