What Determines a Car Insurance Rate?

The premium for your car’s insurance will vary from one insurer to the other. However, some factors will determine the rate irrespective of the company you choose. The cost of your auto’s premium will depend on the following elements in no particular order.

The Condition of Your Vehicle

Okay. Here’s the thing – your car is riskier to drive if you don’t take it for regular maintenance checks. In other words, you’re likely to get involved in a crash if your auto has fault brakes or worn out tires, for instance. Of course, when you take your car for valuation, the valuer will note any faults in the final results. What this means is that your insurer will consider your vehicle as a high-risk item and will charge you higher premiums to cover it.

Don’t wait for your car’s mileage to rack up to the point of damaging the clutch. You don’t even have to deal with a phased out alternator. Find a scrap my car yard near you to have your auto checked every one in a while. That way, you will detect faults before they aggravate into something serious. By extension, this translates to cheaper insurance premiums.

Your Credit Score

Information such as payment history, collections, outstanding debt, bankruptcies and the length of your credit determines your credit-based insurance score. You are likely to pay more for your car’s insurance if you have a bad credit score and vice versa. It is essential that you check your credit score from time to time. On top of that, ensure that you keep your balances low on credit cards and pay off your debts as soon as you can.

Your Car’s Value

You will pay more for your vehicle’s insurance if it has a high cash value. The car’s value comes into play if you want comprehensive coverage. You may consider taking you auto for valuation to get its exact value so that you don’t under or over-insured. Keep in mind that your vehicle’s value may determine where you will purchase a third part, comprehensive or third party fire, and theft insurance.

The Age of Your Car

A younger driver is considered more of a risk than an older driver and is likely to pay more for insurance. A young motorist may over speed and is less experienced. Insurance companies charge more if the insured is a teenager or under the age of twenty-five. This is because they’re more likely to get involved in an accident in comparison to their older, experienced counterparts.

Estimated Annual Mileage

The more miles you drive, the higher the chances of being involved in an accident. A person who uses his or her car more often will pay more compared to a person who only drives occasionally. Be sure to check out your Ministry of Transport annual certificate to know the mile you drove in a specific year. Also, note the mileage on your dashboard when taking out an insurance policy to see how many miles you have driven when renewing your cover.

Your Driving Record

The better the driving record, the lower the premium. If you have been in multiple accidents or serious traffic violation, you are likely to pay more. Equally, you may spend more on your vehicle’s insurance if are a new driver or have not insured your car for a couple of years.

Where You Park and Live

You will pay higher premiums if you park your car in an area that is not safe. Your vehicle is prone to vandalism, theft or social unrest if you park it in unsafe zones. Generally, urban car owners pay more compared to those in rural areas or small towns. Other factors that may vary from one state to another may include cost and frequency of litigation and prevalence of auto insurance as well as medical care.

In conclusion

Your gender may affect determine how much you’ll end up paying for your auto’s insurance policy. See, as a group, women tend to cause fewer accidents compared to men and teenagers and are likely to spend less. Also, women have fewer cases of DUIs and rarely cause serious accidents. Of course, over time, the driving history will determine what you pay for your car’s insurance irrespective of your gender.