viernes, 18 de agosto de 2017

6 Elements that determine your Car Insurance Premiums

Car insurance rates are carefully thought-out calculations, believe it or not, they aren't arbitrary numbers made up by auto insurance providers.
Using your personal information and company claim data, car insurance companies use their own algorithms to make a calculation on how much you could cost the insurer. The riskier you appear, the more you will pay for car insurance. The safer you seem, the less you'll pay.

At GUARDIAN INSURANCE AGENCY located in Fairburn, Lagrange and Norcross,  we want to give you five elements that affect and determine your car insurance premiums:

1. Driving experience:

Inexperienced drivers pose more risk. Anyone who hasn't driven a car is automatically a higher risk to car insurance companies, whether you're 16 or 50 years of age.

Teens are the biggest category of inexperienced drivers and also pay the most because their age and inexperience are a double whammy. A 40-year-old getting a license is thought to be more mature and conservative than a 16-year old behind the wheel and receives a lower rate.

The more years you have under your belt, the better. Even better for your wallet is if you have been licensed for many years and have a clean driving record. That combo will get you better rates, plus discounts for being a good driver.

2. Vehicle type:

Car insurance providers often develop vehicle safety ratings by collecting a large amount of data from customer claims and analyzing industry safety reports, and they offer discounts to customers who drive safer vehicles.

The opposite can apply for dangerous, flashy rides. Some insurers increase premiums for cars more susceptible to damage, occupant injury, or theft, and they lower rates for those that fare better than the norm on those measures.

3. How often, and how far, you drive: 

Insurers also want to know why you're driving your car. A vehicle used to commute to school or work poses more of a risk than the car you only take out of the garage once a week. Personal use of a vehicle costs less than business use, since those using their car for business purposes have a higher chance of being in an accident due to increase driving time.

People who use their car for business and long-distance commuting normally pay more than those who drive less. The more miles you drive in a year, the higher the chances of a crash - regardless of how safe a driver you are.

4. Where you live:

Generally, due to higher rates of vandalism, theft, and crashes, urban drivers pay more for car insurance than do those in small towns or rural areas.

5. Your driving record:

How safe of a driver you are is really important to your car insurance company because your behavior on the road directly affects your risk to an insurer. Drivers with a clean driver's history qualify for better rates and also are eligible for a good/safe driver discount.

Drivers who cause crashes generally must pay more than those who have gone crash-free for several years.

6. Your credit history:

It has been shown certain credit information can be predictive of future insurance claims. Where applicable, many insurance companies use credit history to help determine the cost of car insurance. Maintaining good credit can have a positive impact on the cost of your car insurance.

Your credit rating and history may also affect how an insurance company allows you to pay for your policy. Since statistics have shown that customers with low credit scores are more likely to miss a payment, insurers may ask you to pay a large percentage of the policy up front. Customers with very poor credit scores may be required to pay the entire 6 or 12 month premium upfront in order for the policy to be issued.

Remember that a car insurance policy may help protect your wallet, your vehicle and even offer peace of mind. Contact us for more Information, At GUARDIAN INSURANCE AGENCY located in Fairburn, Lagrange and Norcross, we can help you choose the coverage that's right for your needs.

For more Information contact us: (706) 884-5006 or (770) 969-5666

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