The factors affecting your car insurance rates in 2023 may not surprise you because they have not changed much over the last couple of years. However, you may get a little shock when you see how demographics and your choices can affect the cost of the insurance rates throughout the year.
The premiums may be something you feel you do not have much effect over, but you would be dead wrong. Let’s jump in and see what factors can play a significant role in the pricing of your yearly policy.
- Levels – The level of coverage that you choose to have on your vehicle is one of the most significant deciding factors on your car insurance rates. For example, if you opt for full coverage insurance, you will pay much more than if you had the base-level insurance that the law requires.
- Claims – Every time you file an insurance claim, your premiums costs will go up. Even if you try and change companies, they will run your information and find the reason for the claim, which will still increase the costs. Do not file a claim unless it is necessary. If you can fix a minor issue, do it without involving the insurance company.
- Age – Teenage drivers will always pay the highest premiums, as will senior citizens over 50 years old. As you hit your 20s, the premiums start to go down until you hit the 50 mark, when they again go back up.
- Gender – Gender makes a difference in your vehicle insurance in ways that are still trying to be addressed by many insurance carriers. As a woman, you can expect to pay more for an insurance policy, even if you have a perfect driving record.
- Marriage – A married person will pay slightly less than if they were single or divorced. Married couples will generally have both their names on the policy, which means that the insurance carrier can charge a higher combined premium, but one that is less than it would be for each of them if they had a policy on their own.
- Compare – The only way to get the best car insurance policy is to go online to a comparison site and let them send you the offers that best suit your needs. From there, you will have to pick the one that works for you.
- Credit – That little number that most people ignore is a significant deciding factor on your cost. The better your number is, the lower your premiums will be. That also goes for the history on the credit report. The more stability you have, the better off you are.
- Driving History – If you have a clean driving record with no tickets, your premiums will be less than those with tickets, even parking ones. If you have tickets make sure you get them paid off as quickly as possible. It may not help lower the premiums, but it might.
- Zip Code – If you live in an area with a high crime reputation, you will pay more for car insurance. Where you park in that zip code will also affect the prices. If the car is in a locked garage, you can get lower premiums than if it is parked along the side of the road.
- Deductible – The higher the deductible amount is set, the lower the premium costs will be. Be careful when adjusting this number, though, because it is the amount you will have to pay out of your pocket if you ever file a claim.
There are so many things that can affect your premiums that it is hard to go over them all. What matters the most is history. Your credit and driving history are two of the biggest things an agent will look at. If you choose to go through online platforms, they are even more strict because all that the AI system has to analyze are the facts that can be proven. Keep your driving defensive, avoid tickets, and drive safe.