Factors That Can Impact Car Insurance Premiums

What Determines Your Car Insurance Premiums?

Auto insurance is primarily intended to protect you, the policy holder, from major financial losses in the event that a car is stolen or damaged in an accident. With this contract, an insurance agency essentially agrees to pay the policyholder for losses that are defined in the auto policy in exchange for insurance payments, or premiums paid by the client. The amount that you pay for an auto insurance policy is dependent on many factors, and your auto insurance will be less expensive if you have less risk factors in your profile. If you are interested in some ways to save money on your car insurance in San Diego, California, Windfall Insurance Services Inc. can help. Continue reading to learn more about the factors that can impact your auto insurance rates.

Factors That Can Impact Car Insurance Rates

There are many components that will affect a driver’s insurance premiums. Some typical factors include:

1. A driver’s claims history: An insurance company will examine a driver’s history of previously filed claims and they will evaluate if a driver has had any claims made against them. If a company has to pay out a claim for you, you will likely have to pay higher insurance rates.
2. Driving record: In order to assess your risk behind the wheel, an insurance company will evaluate your previous driving record. You will likely have to pay higher insurance premiums in the event that you have a history of any auto accident, traffic violations, or past auto insurance claims. Fortunately, some previous tickets can be expunged from your record after a certain point in time, alleviating some financial burden.
3. A driver’s credit history: When auto insurance companies are setting their prices, they will consider a driver’s credit score. Typically, drivers with a lower credit score must pay more expensive rates because it is assumed that drivers with low credit are more likely to file a claim than a driver who has a higher score.
4. A driver’s marital status: Believe it or not, your marital status could impact your car insurance premiums. Married drivers are more likely to file less claims than divorced, single, or widowed drivers because it is assumed that married drivers share driving responsibilities and are viewed as more financially stable.
5. A driver’s age: Drivers under the age of 25 years old are more expensive to insure because they are seen as driving risks and may be more apt to drive more recklessly and are at a higher risk for an auto accident.

Get Help Today With Your Auto Insurance Policy

There are numerous factors that can impact the rates you will pay for auto insurance. If you want to learn more about your car insurance options in San Diego, California, contact Windfall Insurance Services Inc. today for a consultation.