Factors Affecting your Car Insurance Rate

When applying for car insurance, most people wonder what factors go in to determining their rates. In fact, there are many criteria that car insurance companies use to set your insurance premiums. These factors can include:

• Age, Sex, and Marital Status. Insurance companies often use nationwide statistics on social classifications to determine how likely a particular person is to get into an accident. Statistically, younger, less-experienced drivers engage in riskier driving behavior and are more likely to get into accidents. Males have a higher accident-involvement rate than females. And single people are statistically more likely to have car accidents than are married people. All of these factors play into determining how much you will pay for car insurance.

• Driving Record. Your driving record lists your driving history, including speeding tickets, accidents, and other indicators of driving behavior. A person who has been involved in one accident is likely to get into another, and a record with multiple speeding tickets indicates risky behavior.

• Type of Car. Insurance companies take into account the cost of repairing a vehicle—a budget sedan is more cost-friendly to repair than is a rare luxury model. In addition, the safety features present in newer cars may make them more cost-effective to insure under some plans when compared to older cars.

• Use of car. The distance and places you drive each day determine the likelihood of getting into an accident. Therefore, people who frequently commute long distances will pay more for car insurance than people who drive their car very rarely.

While many of these factors come into play in determining your car insurance rates, often companies offer discounts and reduced rates for good driving behavior or other reasons. Be sure to inquire with your car insurance company about these discounts to lock in an affordable rate.

Contact Us

To learn more about affordable, high-quality car insurance options in the Indianapolis area, contact the Indianapolis car insurance agents of Insure on the Spot at 317-545-9500.