Car insurance is one of the more scalable investments you can make. It’s not uncommon for some drivers to be paying way more to cover their vehicle than others. If you’re on the market for your next vehicle, it’s important to research the best insurance you can get and how much it would cost you.
There are a lot of factors that go into determining the price of your auto insurance rate. Here are the most common considerations that insurance companies make:
1. Age
Age is one of the largest factors that influence the price of your coverage. Younger drivers tend to have higher rates because they have less experience. Older, more mature drivers have less risk of getting into an accident.
Many insurance providers will lower your rate once you’re 25 and older.
2. Gender
While it’s not the biggest factor, car insurance companies tend to have higher rates for men. Men are statistically more likely to display risky driving behavior and get into accidents compared to female drivers.
3. Driving History
Driver performance is a good indicator for insurance companies that help them determine how much a client should pay for insurance. People with a history of bad driving will have a higher rate to accommodate for potential future incidents.
Speeding tickets, violations, reckless driving and DUIs all influence your rate. New drivers with no history will also pay more than older drivers with a clean history.
4. Vehicle
Your car itself is a huge factor that goes into how much you pay in insurance. The cost of your car, its age, size, features and more are all considered. More importantly, the quality of the safety equipment your car has could lower your rate if it makes it safer to drive.
5. Location
Where you live can affect your insurance rate in multiple ways: the physical state you live in and the area. Every state has its own set of laws for motor vehicles that can make it easier to break them and get fined or get into an accident.
Additionally, drivers who live in more urban settings tend to have higher rates than those who live in rural or small towns because there are higher crime rates like vandalism, theft and accidents that get covered.
6. Claims History
Insurance companies tend to give higher insurance rates to drivers who have a large claims history, both for those who have filed claims or had claims filed against them. Regardless of the outcomes, it shows that you are more likely to involve them in a claim that could potentially cost them money.
7. Credit
Another statistics-based factor, your credit score can influence how much you pay. Historically, drivers with a lower credit score have a higher probability of filing claims that are more expensive for the insurance company. Because of this, drivers with a high credit score receive lower rates.
8. Coverage Level
Understandably, the more coverage you have, the more expensive your monthly rate will be because your provider has to meet a higher coverage limit.
This factor is one of the few that you can control. You could have a low-coverage plan that has a lower rate, but then you run the risk of having to pay more if you get into a bad accident that isn’t covered– it’s all up to what you’re willing to risk.
Quality Car Insurance for Drivers in Virginia
When researching vehicle insurance, it’s important to consider the provider alongside the cost. Different insurance companies will offer you different rates based on their own interpretation of these factors.
Sanford Insurance is an auto insurance provider based in Richmond that offers quality coverage at competitive rates. We offer discounts on your rate based on driving record, auto usage, safety equipment and liability. Even better, you don’t have to worry about us upcharging for minor factors like some of our competitors.
Contact us today and get a free estimate of what your rate would be with us.