Rates For Auto Insurance Are Easy
The most important accessory for an automobile is insurance. Every type of vehicle, be it two, four or six wheeler is required to procure insurance. Thus, procuring insurance is both a requirement and a need. The rationale behind auto insurance is the protection against losses brought about by damage or injury. Countries differ though as to minimum requirements and minimum price for the insurance.
Auto insurance rate is the amount payable, called the premium to be covered by the insurance company. There are many factors to consider in computing for the premiums. Personal circumstances affect the overt all risk one is on the road. Thus a young inexperienced driver in a sports car would be priced differently as against an old man in a SUV. Here are some of the factors that are considered in computing auto insurance rates.
1) Gender. According to studies, women are less prone to meet an accident as against male drivers. This is because women tend to drive on the defensive unlike men who are more willing to take risks while driving. With this, women pay lesser premiums as against men.
2) Age. Younger drivers pay a higher premium compared to an older driver. This is because as one gets older, one is assumed to gain more experience on the road and more mature in handling the vehicle. When one is a bit older, one’s experience would guide the driver as compared to one who has little or no experience on the road.
3) Marital Status. Married individuals have been priced lower for premiums because of the lesser risk one undertakes in driving.
4) Geography. An influential factor in computing for premiums is location. The rates of premium are higher in urban areas as compared to rural areas. This is because of the lesser risk in meeting a mishap in a rural area compared to an urban area with too many cars on the road thus increasing the chances of meeting an accident.
5) Vehicle type. Luxury cars are more likely to be priced higher than a regular family car. This is because repair costs for high-end vehicles are so much higher than run of the mill sedans.
6) Driving record. One’s driving record is also considered in factoring premiums. Those with clean records are likelier to receive lower premiums as compared to those who have been in multiple mishaps or accidents.
7) Credit history. As part of one’s background investigation, one’s credit history is checked. This is because one has to pay for the premiums and one with a bad credit history would be charged higher as a risk investment.
As one can see, insurance rates can easily be obtained. There are many premium rate calculators on line which would provide one a ballpark figure as to the amount payable each month. With this, one can project the possible expenses and thus have a good idea on how to effectively maintain the insurance required for one’s personal circumstances without being financially burdened by the premiums.
See: Gas credit card