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9 Different Factors That Affect Your Car Insurance Policy

Let’s accept it, knowledge of the things that are going in the backend can give you insights into the things that are in play. And, this concept holds completely true in terms of car insurance. Further, car insurance rates are not just numbers that are delivered by auto insurance providers; instead, they are calculated numbers that are thought out from various factors.

Companies similar to Oxford Auto, who provide Car Insurance and other services use data like your personal information, company claim data, and their algorithm to identify how much you could cost the insurer. The higher the risk you would look, the more you’ll pay for the insurance and vice-versa.

Factors That Affect Your Car Insurance Policy

Car Insurance Insurance premiums rely on the base rate of broader categories like very cheap car insurance and other things. However, the main rating factors are:

1. Age And Gender

Younger male drivers are often involved in high car accidents, and because of this vulnerability, the premium charged from such insurers is higher than others. Further, young drivers are immature and easily get distracted, the reason they are the riskiest drivers for the insurers. Also, on the other hand, older male drivers have lower premium rates as compared to older women drivers.

2. Marital Status

Married couples are at less risk to the insurance providers than unmarried drivers. Why? Because married couples are less active and safe than single drivers, which further results in low accident rates. Some insurance companies also offer huge discounts, which include multi-car discounts or multi-policy discounts and more.

3. Job Profile

If your job demands being on the road for a longer duration, you are likely to get high premiums. Also, if you are a doctor or police officer, you will get a better quote on insurance plans as these professions are generally considered to be more mature and responsible behind the wheel.

4. Residential Area

If you live in places where the chance of theft, vandalism, and accidents are higher than normal, expect to get high premiums. Insurance companies have to cover the cost of replacement parts from suppliers like Dallas Body Shop if any are stolen, so they ask for more in case of this eventuality. Moreover, city drivers are expected to get more premiums than the owners are staying in rural areas.

5. Type Of The Vehicle

Vehicles with high safety features and better mechanisms have less premium, so don’t forget to consider the safety rating and other things on the car before buying. Further, vehicles with powerful engines are more involved in costly accidents, and thus, such cars have high insurance costs.

6. Engine Or Fuel Type

The cubic capacity of your vehicle’s engine helps to calculate your car insurance premium. Further, the third-party liability insurance policy rates are based on the cubic capacity of the vehicle. Also, whether you are driving a petrol or you have a diesel or CNG car, it directly impacts your car insurance premium.

Also Read: 7 Simple Ways to Save Money on Car Insurance Quotes

7. Previous Insurance Or Claim History

Age and accidents aren’t just the only things that will hamper your car insurance rates; all things affect your insurance rates. Further, it’s not comprehensive rates and the surcharge rates that matter, it’s the number of claims that also matter. Further, if you have made a lot of claims in a short time like four claims in four years, expect your car insurance rates to be higher than normal. A large number of claims will increase the risk and will also raise your premium for 3-4 years.

8. Deductibles

In terms of the claim, there’s a certain amount that you need to pay from your side, this amount is called a deductible. You can choose a voluntary deductible, which will further reduce your insurance premiums. However, voluntary deductibles can result in a reduced amount of claim settlement.

9. Policy Expiry Details

Every car insurance needs renewal before the expiration. However, if you fail to renew, the insurance provider will then inspect your car and then renew it. This can also increase your car insurance renewal quote. So, get the process done before the expiry date.

So, those are a few things you need to keep in mind before getting car insurance.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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