There are millions of drivers in the world and most don’t know why they have to pay the amount of money they do for their car insurance. They don’t understand what factors are considered when they apply for a new policy or renew their current insurance policy. While some things can’t be controlled, others can.
When it’s time to renew or purchase a new car insurance policy, it’s always best to be honest. Being honest with an insurance company will make the process go faster and lessens the chances of an increase in premiums later. Most people think they will lower their insurance rates by lying about certain things in their past. What they don’t realize is the underwriters for the insurance policies do research and when they uncover the lies, there will be penalties. Some underwriters find huge lies and choose to cancel the coverage or some will adjust the premiums according to what they found. It’s always best to be honest and get a true premium quote and cost.
The Determining Factors
As people begin shopping for their car insurance, some things just can’t be changed. Other things should be considered when shopping for a car. There are many factors insurance companies consider when deciding how much to charge anyone for a policy.
Demographics- Age, sex, marital status and other demographic information can’t be changed. It’s something that is taken into consideration. Statistics show that people in certain age groups are less likely to have accidents and others in different age groups are more likely to have accidents. If a man under 25 applies for insurance, he will be charged more than a 60 year old man because chances are higher the younger man will have an accident faster than the 60 year old.
Driving Records and History- While it’s nice to regret things after they happen, it doesn’t change the fact that it happened. Every driver has a driving history, good or bad. That driving history is taken into consideration when issuing insurance policies. People that have had accidents within the past 2-4 years may pay more than others that have never had a car accident. Getting car insurance after being convicted of DWI/ DUI or other traffic infractions can be harder to do no matter who is applying.
The Car and It’s Features- Everyone wants to drive a nice car. While driving a new car may be nice, the cost of the insurance may not be as nice to pay each month. Many people with new cars have higher insurance premiums because they are more expensive to fix in the event of an accident. There are some ways to get discounts but many times, newer cars cost more to insure.
As people think about their insurance needs, there are many things they should keep in mind. Some things just can’t be changed but other things can be done to lower the cost of insurance. Those that want to lower their insurance should consider:
· Taking a driver’s education class
· Change the amount of time spent driving
· Invest in safety features
· Invest in auto-theft features
· Ask for appropriate discounts
While car insurance is necessary, paying a huge amount of money isn’t.