Personal Factors that Affect Auto Insurance Rates
There are a number of factors that can affect the cost of your auto insurance; some that are in your control and some that are not. The industry of course has certain standards and regulations that set basic pricing, but what about those “personal” factors that you can actually do something about? It helps to know exactly what they are. There’s no way that you can change what’s already happened in the past, but you can do something about your future. Follow the suggestions in this article and you’ll eventually start to see your rates come down.
Your driving record or profile is the number one factor considered when setting your San Diego auto insurance rates. If you have a history of traffic accidents, moving violations, and perhaps a DUI or two, your rates are going to be high. If you drive the speed limit, think defensively while on the road, and follow all traffic laws, you’ll have low insurance rates. In other words, you pay the price for your actions while you’re behind the wheel. If you don’t want high car insurance rates, don’t do dumb things while you’re driving.
The car you drive is part of the equation when calculating auto insurance rates also. Insurance rates are based on sticker price, so the more expensive the car; the higher the price of your car insurance. Think about that the next time you’re contemplating the Lexus over the Toyota Camry. Both cars offer basically the same features and are manufactured by the same auto make. The difference between the two is brand name and sticker price. Are you willing to pay extra for the status symbol? If so, by all means buy the Lexus. If you want to save money on your auto insurance, you might want to consider the Camry instead.
How high is your credit score? Yes, that is a factor in setting the price on your commercial auto insurance too. A low credit score will lead to all kinds of additional expenses on an automobile. The finance costs will be higher, insurance will be more expensive, and you’ll most likely have to pay cash for any repairs because those with low credit scores may not be eligible for credit or credit cards. Word of advice: buy a used car, pay cash for it, and build your credit score by paying off some of that old debt and getting bill payments out on time.
The final two factors are your age and occupation. You can’t change the former, so if you’re young and paying high car insurance rates you’ll just have to age out to get past those. If your job affects your rates you might want to do the math on what you take home and how much extra its costing you in auto insurance to make that money. You may find it’s not worth it or you may find that it is. If you’re taking a loss, change jobs and move to a different neighborhood. That will make your insurance rates go down also. Call Wayne McCormick for a quote today at (619) 276-0492.