Some of the top questions new policyholders love to have answers to before buying any car insurance coverage even on a good discount include but not limited to:
- What are the factors that influence the car insurance rates of new drivers in the United States and the United Kingdom?
- What do the best insurance companies in the United States of America and in the United Kingdom consider when determining someone’s premium?
- Why do some drivers have higher insurance rates more than others?
- And what can a driver in the UK do to reduce their car insurance rate?
When shopping for car insurance, many intending car owners often concentrate on getting low insurance rates.
While that is commendable because you don’t get to spend more in the end, it could also be a lousy venture, because some other factors could affect the cost of your auto insurance.
So, if you’ve been tempted to or longing to get reduced auto insurance rates by selecting lower amounts of coverage, then you need to discover other things that can influence your car insurance rates in 2020.
Truth be told, your credit score, location, marital status, driving record, age and gender are key factors that can influence your car insurance rates in 2021.
6 Things That Can Determine What Your Car Insurance Rates Will Be
1. Credit Score
Your credit score or rating is unarguably one of the essential factors that influence the outcome of the auto insurance rates.
The general rule is that a good credit score or rating equals a steady or lower auto insurance rate, while a low or bad credit score/rating triggers more auto insurance rates.
Worthy of note is that many auto insurance providers beam their searchlights on the credit standings of prospective clients. That is tenable because the credit score is likened to an insight into the financial activities of the potential borrowers.
So, if you haven’t been meeting up with your remunerations in the past couple of months, then your credit score tends to be lower. In addition to that, the concept of “lower the credit, the higher the premium” applies.
2. Marital Status
One big question people hop on platforms like Quora and other niche communities to ask is, how does being single or married determine a person’s car insurance rate?
As funny as this might sound, married individuals are in the “good books” of auto insurance providers as opposed to their single or engaged counterparts. So, what is the idea behind lowering the insurance rates of married people?
As has been touted in many quarters, married couples, especially the men, tend to be involved in fewer accidents. Perhaps they’re more careful in driving, or they don’t overspeed because they have more people depending on them then.
Therefore, from the postulations, married men might be on the way to getting their insurance rates halved.
Also, note that your driving history adjudges the reduction of the prices. For instance, if you haven’t been in an accident for some months/years, never had an accident, or you have a clean driving record, then you would on the way to getting reduced auto insurance rates.
3. Driving Record
How does one’s driving record affect the outcome of their car insurance premiums, you may ask?
Worthy of mention is that your driving record could influence the outcome of your application for a car loan.
Aside from getting your loan request turned down, you might end up paying more auto insurance rates if you have a horrible driving record. That is feasible if your driving record is packed with accidents and tickets.
Also, if you have made some insurance claims in the past, it could be a red flag to the insurance company that you’re likely to make more of such claims in the future.
Therefore, if you must scale through this, then turning on a new leaf is the best thing to do. For instance, if you’ve been in some accidents in the past, then it’s ideal that you begin to drive more carefully and slowly to improve on your driving record.
4. Likelihood of Theft
This is perhaps one of the most overlooked triggers for higher auto insurance rates. Indeed, some cars or vehicles are more susceptible to theft than the others are. For such cars, the auto insurer tends to increase or jack up the insurance rates.
However, if you’re still keen on purchasing one of such vehicles, then it’s ideal that you have additional security features. Such sends signals to the insurer that you could protect the car as much as you can. Hence, the auto insurer would likely reduce the higher premium hitherto accruable to such vehicles.
5. Gender and Age
Your gender might for or against the premium you get on your auto insurance loan. Men tend to be on the “receiving” when it comes to auto insurance rates. It’s believed that women are more careful than men when it comes to driving. That is the assertion based on gender.
However, the table tends to turn when it gets to age. Ideally, young men that are still in their twilight usually incur higher rates, because it’s believed that younger men have more accidents than their female counterparts. Moreover, as age increases, the tables continue to turn. As has been posited in many quarters, older women are in more minor accidents than their male counterparts.
Therefore, the gender and the age perspectives, as highlighted above, are some of the factors that can influence your car insurance premiums in 2021.
The location is the last but not the least of the factors behind a higher or a lower auto insurance rate. The general rule is that densely populated places with more cars are more prone to collisions, accidents, and car thefts. So, if you’re living in such areas, then it’s likely that the auto insurer would increase the premium.
Your Car Insurance Rates Can Skyrocket in 2021 If Don’t Act Fast
You don’t need to have all the hopes in the world that the auto insurer would grant or accept your auto loan request. It’s essential to consider those as mentioned above, which could aid in the reduction or the increment of the insurance rates you pay on the auto loan.
You might also check with other auto insurers to check the rates. What other factors do you recommend to bolster the reduction of your auto insurance premium?