Car insurance rates can be elusive if you don’t know what insurers base their numbers on. While every insurer is different, there are certain baselines they use to come up with personalized quotes. Knowing these indicators can help put you in the driver’s seat, obtaining fair and reasonable rates you can manage. Here are a few:
Major Factors to the Cost of Car Insurance
- Credit score
Credit score – those two little words that have so much impact on whether you get reasonable rates. Insurance companies take risky credit seriously and want to make sure they are getting a good return on their investment. If your credit isn’t that great, you may end up paying more.
- Driving history
If you’re known for being a road rage magnet, or you have a lot of tickets, driving under the influence situations or other unfavorable instances that reflect poorly on your driver’s license, you can expect to have a higher rate. Depending on how bad things are, you may not find an insurer that wants to take the risk.
- Car insurance claims history
Anything can happen, and there are situations where damage to your vehicle is not your fault. Even so, insurers take a hard look at the number of claims you’ve filed over a certain period of time to determine whether you’re eligible for the “good” rates.
- Type of vehicle
No matter how young or old you are, you may have a dream of owning a sports car. If you’re trying to make that dream come true, you should be prepared to pay a little more to insure your prized possession. Cars of certain horsepower, cost of repairs, and other small details add up over time. Those anticipated costs will be passed on to you.
- Where you live
Location, location, location. It’s true. Insurance rates differ based on where you live and what’s going on in the area. Areas that are super quiet with no thefts? You’re probably going to get a fantastic rate. Areas where there are a lot of reported parties, break-ins, and thefts? Expect to pay more.
- Age of driver
While you’re young and carefree, insurers consider you a risk. Young people are more prone to accidents, and insurers have proof. If you’re a young male, those rates maybe even higher.
- Marital status
Have a spouse? It’s going to work in your favor. Married couples have significantly lower rates for a number of reasons. If you’re thinking about getting married, you can smile knowing you’ll eventually get a break on car insurance.
Great Rates with Great Lakes Insurance
Everyone wants low insurance rates, but these factors help determine what will and won’t take place. Working with an insurance agent will help you get the best policy that meets your standards and your budget. The team at Great Lakes Insurance is ready to point you in the right direction based on your needs. Servicing the residents of Cloquet, Duluth, and the surrounding areas in Minnesota, you’re going to be in great shape! For more information on obtaining the best insurance policy for your vehicle, give us a call today!