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5 Things That Can Influence Your Car Insurance Premium

In most states, it is required to have car insurance. However, the price you pay for your car insurance is unique. As such, car insurance providers use a variety of factors to determine the specific cost of your insurance.Factors such as your age, state of residence, credit score, your car’s make and model, and driving record typically play a role in the calculation of your insurance rate.Before you renew or buy a new auto insurance policy, speak with a representative from your insurance company in Florida. They will explain which factors influence insurance rates. Here are five factors they are likely to mention:

1.  Car Make and Model

Although you might expect a new vehicle to cost more to insure than an older one, this isn’t always the case. This is because newer cars may qualify for additional savings if the vehicle has improved safety features. These features include anti-theft devices and crash-prevention technology.However, without refined safety features, newer vehicles are usually more expensive to insure. Car insurance providers prefer to insure safe vehicles since they’re less likely to lead to costly claims.

2.  Credit Score

In most states, insurers consider your credit score a crucial factor when calculating your car insurance premium. Drivers with a low credit score pay around 71% more than drivers with a good credit score.However, some states don’t allow the use of your credit score when determining your premium. These states include California, Hawaii, Massachusetts, Michigan, and Washington. Your insurance company in Florida will likely require a credit score.

3.  Driver’s Age and Gender

Insurers also take your age into account when determining your car insurance premium. Since teens have four times as many crashes compared to drivers above the age of 20, young drivers can expect to pay higher premiums. Additionally, drivers over the age of 65 can expect to pay higher premiums due to decreased vision and slower reaction times.Gender also plays a factor in most states. This is because young men are more likely to speed and less likely to wear seat belts. As such, men usually have higher premiums than women, especially if they are under the age of 25.

4.  Driving Record

Previous driving violations such as speeding tickets, DUIs, accidents, and reckless driving will increase car insurance rates. As such, drivers with a spotless driving record can end up paying 40% less than drivers with a      poor record. This is due to the availability of safe-driver discounts. Typically, minor violations such as speeding tickets can increase premiums by 20 to 40%. Major violations such as DUIs can increase rates by 100% or more.

5.  Location

A Florida insurance agency will tell you that location is the most essential factor influencing your car insurance premium. This is because each state has its own laws about car insurance premiums, with different categories of required coverage and minimums.The more coverage your state requires you to purchase, the more expensive your car insurance will be. Speak with your experts at Demont Insurance to learn more about what to expect from your auto insurance.

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