Most Frequently Asked Questions About Car Insurance
Here are some of the top questions new policyholders love to have answers to before buying any car insurance coverage:
What factors influence my rate?
What do the best insurance companies consider when determining someone’s premium?
Why do some drivers have higher insurance rates more than others?
And what can a driver do to reduce their car insurance rate?
When shopping for car insurance, many intending car owners often concentrate on getting low insurance rates. "While that's understandable and certainly an important consideration, you also get what you pay for. It's about striking a balance between solid coverage and doing it at a reasonable price," says CH Customer Service Lines Representative, Rebecca Blitman.
So, if you’ve been tempted to go for the most reduced auto insurance rates by selecting lower amounts of coverage, then you need to understand what you're risking, and what other factors go into buying the right coverage for you and your family. Your credit score, location, marital status, driving record, age and gender are key factors that can influence your car insurance rates in 2021.
6 Things That Can Determine What Your Car Insurance Rates Will Be
1. Credit Score
Your credit score or rating is one of the essential factors that influence the outcome of the auto insurance rates. The general rule is that a good credit score or rating equals a steady or lower auto insurance rate, while a low or bad credit score/rating triggers more auto insurance rates.
2. Marital Status
How does being single or married determine a person’s car insurance rate?
As funny as this might sound, married individuals are viewed more positively by auto insurance providers versus single people. So, what'is the idea behind lowering the insurance rates of married people? Believe it or not, married couples, especially men, tend to be involved in fewer accidents. Perhaps they’re more careful in driving, or they don’t speed because they have more people depending on them then. Here at CH we're not sure of the science... but we do know married men get in fewer accidents than single men.
3. Driving Record
How does your driving record affect the outcome of your car insurance premium?
In almost every case, you'll end up paying more auto insurance rates if you have incidents, speeding tickets, accidents, on your driving record. You're just a greater risk for the insurance company. Also, if you've made some insurance claims in the past, it could be a red flag to the insurance company that you’re likely to have more claims in the future. It's a probability game. Slow down, drive more carefully, improve your overall driving record if you want to avoid higher premiums in the future. More importantly, it's just safer for you and all of those around you.
4. Likelihood of Theft + Value of Automobile
This is perhaps one of the most overlooked triggers for higher auto insurance rates. Certainly the value of cars runs the gamut. That's not so surprising to most that your collision insurance for example on a higher premium value vehicle is more costly than on an older, less valuable vehicle. What DOES tend to get overlooked is that some vehicles are more susceptible to theft than the others. For such cars, the auto insurer tends to increase the insurance rates accordingly. If you’re still keen on purchasing a premium vehicle, then make sure you have enhanced security features. Your CH Advisor will ask you these types of questions when preparing your auto insurance policy/quote for you.
5. Gender and Age
Your gender can play a role in determining your premium. It’s believed and demonstrated through statistics, that women in fact ARE more careful than men when it comes to driving.
However, as age increases, the tables turn. Statistically, older women are in more minor accidents than their male counterparts.
The location is the last but not the least of the factors behind a higher or lower auto insurance rate. The general rule is that densely populated places with more cars are more prone to collisions, accidents, and car thefts. So, if you’re living in such an area, then it’s likely that the auto insurer would increase the premium. Less population density, fewer thefts and accidents, generally can mean a lower premium.
Your Relationship With Your Insurance Carrier Matters
The Independent Insurance Agency
One further important factor, and maybe the most dominant factor of all in determining your premium, is you having CHOICE. An independent agency like CH Insurance works with many different insurance carriers rather than a captive agent where you basically only can deal with the premium that one carrier offers.
Your Five Star Agent
In most cases, your premium is your premium based on the variables mentioned above. Often there can be a reduction in rate when you bundle your auto with home, etc. Most carriers offer that option. What DOES differ is the relationship and accessibility of your agent when you need them the most. Do they offer Five Star Service?
When there's a claim
1. Will your Trusted Agent get right back to you?
2. Will they be your best advocate with the insurance carrier when there's a claim?
3. Will they get you all the information you need right when you need it?
4. Will they anticipate what comes next and head things off at the pass on your behalf?
So yes, we agree the premium for your auto insurance is important. But there are many factors that go into that. And you also want to be certain that your Agent will be there for you when you need them the most, 24/7, 365. That's were CH comes in. We're in your corner.