Guide To Understanding Insurance Rates:
Many of the features found in cars today give you an unprecedented level of control — traction control, cruise control, climate control, even control over your seat’s temperature. However, there still are many more aspects that we don’t have control over while we’re driving, such as traffic lights, road conditions and our fellow drivers’ behavior.
When it comes to how much we pay for auto insurance, however, that’s determined by some details we can control as well as some details we can’t. If your auto insurance bill leaves you stunned at how much you pay despite your clean driving record, you need to know all of the factors that go into determining your auto insurance rates. Chances are, there may be some steps you can take to lower your rates, but other elements you’ll have to learn to live with until they change on their own.
Most people know that their driving record makes up a substantial portion of what determines their insurance rates. This includes whether or not you’ve had any accidents as well as whether or not you’ve received any traffic citations. However, your driving record also includes how often you drive, and how far.
Insurance providers look at your driving habits and calculate your risk based on how much time you spend on the road. If you have a longer commute to work each day, you may have to pay more in premiums. Other factors that you don’t have any control over include your age, which also figures into how insurance providers calculate your risk. Like it or not, insurance companies judge you by the behavior of your peers, so teenage and elderly drivers can expect to pay more — even if their records are spotless. It’s also important to remember that the type of car you drive influences your rates. The flashier and more expensive your car is, the higher you can expect your auto insurance rates to climb.
The following guide lays out the most important factors that determine how much you spend on your auto insurance. If you’re wondering just how much of your insurance rate is out of your control, the answers may be provided here.