7 Things That Can Impact Your Car Insurance Rates

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We have put together a list of a number of things that can affect your car insurance rates. We suggest reading this article thoroughly. It may help you determine ways to lower your car insurance rates. That said, here’s what made the list:

7 Things That Can Impact Your Car Insurance Rates

1. You Car Insurance’s History

The longer your history of having insurance coverage and if you had policies with better coverage, then you won’t pay too much for auto insurance. For example, if you were at fault in an accident that resulted in a person getting injured, but your coverage limits were high, then the insurance companies will believe you are responsible. They’ll look at you being more responsible than someone who has had the lowest coverage possible.

If you want to see savings, then you should have a history of carrying at least $100,000 of bodily injury coverage for the last five years, and you’ll want to have had a history of carrying $300,000  per collision. If you meet that criteria, then you can expect to pay around $182 less annually for the same policy as a person who has a history of not having any insurance coverage.

Furthermore, if you’ve lapsed in coverage, then this could cost you. It doesn’t even matter if you lapsed for a few days. This is considered risky behavior.

Do bear in mind that California residents have an exception. It’s the only state that doesn’t take a person’s history of coverage into consideration. California residents don’t have to worry about their history playing a role in how much their auto insurance premiums will be.

2. Why Do You Drive

Your insurance company will care why you drive, such as do you drive strictly to get to and from your job? Do you use your car to bring stuff back and to from your farm or do you use it in the daily operations of your business? Depending on why you drive, you can either pay less or much more for coverage. In fact, prices can vary by as much as 20%, which means why you use your vehicle can greatly impact premiums.

People will pay the least if they use their vehicles on their farm, while those who use their vehicles for business purposes will pay the most. Also, do not think about lying about why you drive because your policy could be canceled out. Do make sure you tell the insurance agent how the car will be used because this could result in you getting the best possible rate.

3. Lying During The Application process Can Be Costly

If you decide to hide the fact that you were involved in an accident or violations, then you could find yourself in trouble. In fact, you could end up paying a lot more if the agents find out that you didn’t disclose any incidents. The bottom line is you want to be upfront and as honest as possible when you are applying for car insurance.

4. Are You Coupled Up

Couples who are married pay less for auto insurance than those who are single. Apparently married men tend to pay less, which is interesting. However, things become even more interesting when you compare windowed and divorced people.

When a person gets married, their rate may drop by around $65 per year, but if they get divorced, then the rate goes back to what it was when the person was single. If you’re married and your spouse dies, then rates do increase slightly, but not as high as it would if you were divorced. This might not seem fair at all, but insurance companies have a certain way of determining risk.

However, there are states where insurers don’t consider marital status. These states include Montana and Hawaii. Massachusetts is among those states too.


5. Not All Violations Are Equal

Different violations are treated differently by the insurance companies, and how they are treated can vary from one state to the next. For example, you can expect your rates to increase by a few hundred bucks if you get charged with a DUI or if you received a violation for racing or driving recklessly. A DUI will raise your rates by over 100%, or more than 350% in North Carolina or by more than 200% over in Hawaii. There are a few states that consider racing as the most expensive violation.

Also, penalties for certain violations don’t really correlate with the safety risk involved. For example, texting and driving are considered to be just as dangerous as driving drunk, and if you’re caught texting and driving, then you could end up paying a lot more your insurance. As for a DUI, in some states, it can send rates 3,000%  higher than if you were caught texting while driving.

6. Education Plays A Role

People with a bachelor’s degree tend to save around $30 or more per year on insurance than those who do not have a high school diploma. This does really depend on where you live. For example, if you live in Delaware, then you would pay around $130 less for insurance if you held a Ph.D. and if that was compared to someone who doesn’t have a high school diploma.

Many people become offended when they are asked about their education and some people don’t disclose the info. This can result in a higher rate because there might be a chance you would have been able to save. Just make sure you disclose whether or not you hold a degree or if you do not have a high school diploma. Whether this is right or wrong does not matter.

7. How Long Have You Had Your License

How long have you had your driver’s license because this can play a role in how much your rates will be? The length of time you’ve been driving is a good indicator of your experience. If it’s been less than three years, then be prepared to pay higher rates than someone who is in your age group, but has been driving for over three years.

This means if you’ve been driving for over three years, then you might be offered a better rate, especially if during those years you’ve demonstrated you’re a cautious driver. If you have been driving for less than three years and have been involved in accidents or charged with violations, then you can expect to pay a very high rate. What you want to do is be very cautious while driving because it can mean the difference between high premiums or a good deal on insurance rates.

You might find yourself feeling annoyed at how many factors come into play when it comes to determining how much you’ll pay for auto insurance. Nonetheless, it’s still good to learn about the details that may be used by insurance companies. Insight can help you make changes and take steps to do things this can land you a lower rate on your car insurance.

Will is the Executive Managing Editor at Feedster. Will and his team from Full Epic Lead Generation work with venture capital, marketing co-ops, and companies to attract and gain qualified leads.

His primary focus on developing a sales funnel for a company and finding out of the box / growth hacking style ways to convert and drive traffic.

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