The cost of auto insurance depends on a number of factors,
including where you live, your age, the type of car you drive, the coverage you
buy, your deductible, you're driving history, and so on. As s result, auto
insurance premiums vary for every person even for the same coverage.
When shopping for auto insurance, San Diego providers share 5 main factors that will influence your
insurance premiums.
Rating Territory
Areas where there are high rates of accidents, number of claims
files, and average cost paid for claims generally have higher insurance rates.
Rates are based on jury awards, repair costs, hospital and medical expenses,
and vandalism and theft in the locality. In fact, some people with a perfect
driving record will also be charged the current rate for the locality where
they have their vehicle.
Usage of the Vehicle
If you drive less, you’ll pay less. Low annual miles usually translate into a smaller chance of having an accident, so you don’t pay high rates. Auto insurance rates are also lower if you usually don’t drive our car to work or drive less than 3 miles one way. Premiums slightly elevate is you drive more than 3 but less than 15 miles to work and increases if you drive more than 15 miles each way. On the other hand, if you use your vehicle for work only, you’ll have to but business auto insurance.
Personal Characteristics of the Driver
The driver’s age, gender, and marital status can also influence
car insurance rates. Insurance providers calculate the premium differential according
to the number of accidents happened in certain age groups. For example, drivers
of age 25 and under makeup around 15 percent of the total driving population
but have nearly 30 percent of auto accidents in which 26 percent are fatal
crashes.
Male drivers have a higher percentage of fatal accidents,
therefore, married men under age 25, and unmarried menage 29 or underpay
higher premiums than older men. Women over age 24 and married women of any age
are exempt from the young driver classification and thus pay lower premiums.
Type of Car
Insurance agencies charge a higher rate for cars classified as sports vehicles, high-performance, intermediate-performance, and those with rear-engine models. In some states, there are different rates for four-door cars and two-door cars. So, if you are planning to buy a Bugatti or a Porsche, be ready for higher insurance rates.
Driving Record
Driving records, accidents, and traffic violations affect
insurance premiums. More serious traffic violations like DUI, leaving the scene
of the accident, driving with a suspended or revoked driver’s license, and
homicide or assault occurring from the use of vehicle all result in higher
insurance premium levels.
Among many, these factors will definitely affect the rate of
your car insurance. San Diego residents and automobile owners should look
for a reliable insurance provider for safer shopping.
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