Do you ever wonder why you can get an online auto quote from various insurance carriers and they all come back a little different? It's likely because 1 - they aren't using the same exact criteria for you and 2 - they may not provide you the exact same coverage, so you may not be comparing apples to apples.
The car insurance coverage we are referring to are the deductibles, extra insurance like uninsured motorist, towing and rental car coverage and then the varying amounts of coverage for liability, property and medical coverage. Then, there is your background, demographics and history which can cause all of those other coverage amounts to change. Let's not forget that there are many insurance companies that insure people for a number of reasons and some may be "better" at home insurance than car insurance or vice versa. So there is that too. But let's talk about you and how you and your history can affect your insurance premium.
Age, marital status, gender, amount of years behind the wheel
Who you are matters a lot to the insurance carrier and your policy. Your gender and age are especially important in determining how “risky” you are behind the wheel. Your marital status factors in, and so does the amount of time you’ve had your license. Seems strange that something like your marital status factors into risk, but it’s true!
Your vehicle type and use
The kind of vehicle you drive, and how you use it, also factor in. For instance, if you have an old clunker (not too old) that you drive twice a week, your rate may be lower than someone who drives a high-end, brand new car every single day for 4 hours. This is because your risk of an accident is lower, statistically speaking, and even if you did have one, the damage/repairs would be less than the expensive car. It's about risk and replacement value there.
Your credit score and history
Another two factors that seem strange to factor in, right? However, a lower credit score is thought to mean that a policyholder will be more likely to file a claim in comparison to someone who has a higher credit score. If you have an established credit history and a great credit score, your premium may be lower than someone who has neither of those things.
Factors are weighted differently from policy to policy and carrier to carrier
All of these various factors are going to mean something different to each policyholder, each insurance carrier and each insurance agent out there. That’s part of why you’re getting all of those different numbers in the first place! However, an insurance agent will be able to explain why they’re weighted differently so that you can see just what you’re dealing with. (apples to apples)
A local agent can find you the best rates for your situation
When you want to make the most out of these 8 criteria, your local insurance agent will be able to shop around for different policies and explain all of the options to you so that you can pick the one that is going to give you the best rate and coverage, and know why that policy is the best one for you.
While no one wants to pay those monthly premiums to begin with, knowing that you can save as much as possible by understanding the factors that go into creating them will help you and your insurance agent to work together to get the best rate on your policy and that you are still getting the protection you deserve. Contact Harbour Insurance Services at (281) 520-4090 with any questions about your car insurance policy, to get a free quote or if you have other personal insurance needs, as we can help you with those too!