When you go to an insurance provider and inquire about automobile insurance, you’re probably provided with a rate quote pretty quickly, right? Well, despite what the quick turnaround suggests, a lot of factors are used to determine how much you’ll have to pay, and, unfortunately, there are many different “red flags” that can send your premium amount through the roof. If you’re curious to discover what could be affecting your costs, read on to learn more.
Your Driving History
First things first, an insurance provider is always going to check to see what kind of driver you are. If you’re someone who drives a lot of miles, for example, your premium is going to be higher since the more you drive, the more risk you face. Likewise, if you have a history of accidents, tickets, or other wreckless behavior on the road, you can expect to see your past mistakes reflected in your premium. Don’t despair too much if you have a less-than-stellar driving history. Reforming yourself, being a good driver, and not having any incidents can slowly but surely reduce your rate.
Your Credit Score
Insurance companies want to feel secure in the fact that you’ll be responsible when on the road. So, they often look to see how responsible you’ve been in other areas of your life. If you’re someone who isn’t smart with money and who doesn’t take your finances seriously...or who appears not to based on a credit check, you can expect to pay a higher premium than someone with good credit.
The car you drive also plays a role in determining your insurance rate. So, this is the one case in which driving an old, beat up clunker can actually work in your benefit. The more expensive a car is and the higher its value, the bigger the risk to the insurance company if it’s damaged or stolen. And the bigger the risk to the insurance company, the higher your premium.