How Are Car Insurance Premiums Set?
October 28, 2015
Many different factors influence your auto insurance premiums. These factors are based on accident statistics and risk analysis, and therefore certain factors are more important than others in determining your car insurance rates. The riskier a driver is, based on statistics for certain factors, the more he or she will likely have to pay for auto insurance.
7 Ways Car Insurance Premiums Are Set
These factors can include, but are not limited to:
- Car type. Generally, luxurious or otherwise expensive cars will cost more to insure than older vehicles or budget models.
- Gender. Statistics show different risk factors associated with people of each gender. Therefore, your gender can have an effect on your insurance premiums.
- Age. Young, inexperienced drivers usually must pay more for car insurance since they are more likely to get into accidents than older drivers.
- Marital status. Married couples are often offered lower insurance rates because they are viewed as more mature and lower-risk than single drivers.
- Occupation, work, and work environment. Those who drive long distances to and from work and home or work or live in high-theft or high-accident areas usually face higher insurance premiums.
- Credit score. Your credit score factors into the risk assessment performed by insurance agents. Those with lower credit scores are seen as more risky, and therefore face higher insurance premiums than people with good credit.
- Education. Those with a college or university education, as well as high-performing students, usually qualify for lower-cost premiums because they are seen as more responsible, and thus less risky.
For more information on affordable car insurance in the Chicagoland area, contact the Chicago car insurance agents of Insure on the Spot at 773-202-5060 today.