Car Insurance Rates
The rates of car insurance policies can vary significantly from one person to another, as well as from one provider to another. You could find that car insurance could run you anywhere from $1,000 - $4,000 per year. The exact amount depends on who you are, where you live, what you drive and when you drive it. Insurance companies gamble on you as a driver. They have to look at your history and the type of person you are, (Along with statistical breakdown) and then ask themselves the question, how likely is it that this person will file 1 or more claims? If they feel that you are more likely to file a claim at one point or another, then they will charge you more for coverage.
There are a plethora of elements that work together to determine the cost of your personal car insurance policy. These elements include:
- Age / Gender: Statistics show that male drivers under the age of 30 are more likely to get into an accident, therefore they are generally charged at higher rates than drivers over 30.
- Driving History: If you have a history of reckless driving, claims, moving violations, etc., then you will see higher rates for your car insurance.
- Driving Experience: If you are an experienced driver as opposed to a new driver, you will generally pay lower rates. (Assuming of course you have a relatively strong driving history)
- Location: Location is a large factor in car insurance rates. If you live in an area with heavy traffic and a high crime rate, your rates will be higher.
- Usage: If you spend a great deal of time behind the wheel, then there is increased probability that you will need to file a claim at some point. This can cause your rates to be higher.
Insurance providers first look at each of these elements independently, and then they look at them all together and generate your insurance quote.
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