Facts About Insurance

6 Things To Know To Keep Car Insurance Rates Cheap

6 Factors that Affect Your Car Insurance Rates

Insurance for Dummies

Understanding the basics of car insurance can be difficult and seem frustrating when looking for car insurance. Below we have outlined important insurance facts that will help you have a better understanding of insurance and how it works.

Fact 1: Rating Factors

Insurance premiums are calculated using rating factors. These factors include marital status, age/gender, and location.

Female Vs. Male DriverAverage Monthly Rate
Progressive Insurance Female Driver$140
Progressive Insurance Male Drivers$188
Fair or not…gender affects the rate of your car insurance premiums.

For example, if you look at the snapshot above of an actual monthly premium for a male driver using Progressive, they are paying a noticeable amount more than a female driver.

Statistics also show that married people get in less accidents and/or cause less property damage in the event of an accident.

Younger drivers cost more to insure because they are considered higher risk, usually the possibility of getting into an accident is greater than someone with more driving experience.

Fact 2: Credit Scores Impact Your Insurance Premiums

Credit plays an important role in insurance, just like it does when making a big purchase like buying a home or financing a car.

Insurance companies look at credit to determine what type of risk you are; low, or high risk.

Good. Vs. Bad CreditAverage Monthly Rate
Nationwide Good Credit$140
Nationwide Bad/Poor Credit$169

A customer with excellent credit has a history of making payments on time, and will receive a cheaper insurance rate.

Fact 3: Cancelling Your Insurance Will Cost You

Whether you own a vehicle or not, you should keep your auto insurance active.

If you sell your car, or no longer need insurance on that vehicle, consider switching your policy to a Non Owners, Or Broad Form policy.

This way you will not lose a huge discount for having continuous insurance when you need to purchase a new policy.

You can get different types of insurance policies to reduce the cost if you have sold your vehicle, until you buy a new one.

Fact 4: Insurance Prices Vary Upon Companies

Car Insurance companies specialize in different things, whether it be SR22 Insurance, high risk drivers, vintage/foreign vehicles, etc. Companies like Progressive, while premiums are higher for high risk drivers, might have better deals.

However, some companies will decline coverage for that same customer because they are a greater risk.

A lot of companies will not offer coverage for a customer with an excessive amount of points, or may not offer coverage for foreign vehicles, like the BMW.

Progressive InsuranceAverage Monthly Premium
High Risk Driver/Poor Driving History$163
Insurance companies are not one size fits all.
Farmers Auto Insurance Average Monthly Premium
High Risk Driver/Poor Driving History $194

Fact 5: Insurance Discounts Will Save You Money

Many companies offer discounts, like continuous insurance discounts, bundling discounts, Accident Free discounts, safe driver discounts, and Paid In Full Discounts.

Potential Discounts Available
Advanced Quote
Paperless Discount
Homeowners
Education Discount
Military
Continuous Insurance
No Accidents or Violations
Multi Vehicle
Multi Policy
There are so many potential discounts that aren’t even listed here!

Check with your insurance provider to see what types of discounts they offer.

Fact 6: Coverages Affect Your Premium

Insurance premiums will vary depending upon the types of coverages you have.

You can choose to only carry liability insurance, which is the bare minimum requirements.

Progressive InsuranceAverage Monthly Premium
Liability Only Insurance$82
Full Coverage Insurance$160
Ask one of our brokers if you have unnecessary coverage!

You can customize your policy by adding on additional coverages like Uninsured Motorist or Medical Payments.

Aside from Liability, you can choose to Carry Full coverage which covers the vehicle in the event of an accident. Adjusting your deductibles will impact the rate, as well as extras like Rental Reimbursement and Roadside.

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Last Updated on November 11, 2021 by Shawn Christie

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By Justine Pronk

I Was born in Avis, PA, moved to Easley SC in 2005, where there I graduated from Easley High School. I Enjoys hanging out with my husband and my 5 year old son Connor. We enjoy anything outdoors like camping, and hiking. My favorite quote is ''every ending is also a new beginning'' I started with A Plus insurance in 2020. Favorite color: pink Favorite sports team: Philadelphia Eagles Favorite season: Fall