What Kinds Of Factors Influence Car Insurance Costs?

Car insurance is essential because it protects against financial losses incurred during an auto accident and from auto theft. Basically, a car insurance policy is an agreement in which an insurance company pays for losses that are outlined in an insurance coverage policy, in exchange for a monthly payment by a policyholder. There are a variety of factors that can impact how much you will pay for auto insurance, and your policy will be less expensive if you are considered a driver with less risk. If you want to know more about how to save money on auto insurance in San Diego, California, Windfall Insurance Services Inc. can help. Read on to learn more about the kinds of factors that can influence your car insurance costs.

Driving Record

In order to assess your risk behind the wheel, a company will evaluate your past driving history. If you have any previous records of traffic violations, car accidents, or past auto insurance claims, it will result in paying a higher amount for insurance premiums. It is important to note that in some cases, past tickets can be eliminated after a certain period, however, it is important to be a cautious driver at all times.

Claims History

An insurance company will also analyze your past insurance claim record when determining your premium costs, including both claims that you have filed or that were filed against you. If an insurance company has had to pay a claim on your behalf, your premium expenses will be increased.

Credit Score

1Another factor that insurance companies will consider is a driver’s credit history. It is a general assumption that if a driver has lower credit, they will be more likely to file a claim than drivers with decent credit, resulting in drivers with lower credit to pay higher insurance premiums.

A Driver’s Marital Status

Whether a driver is single or married can have a potential impact on insurance rates. Drivers who are married tend to file a fewer number of claims than single, widowed, or divorced drivers as it is assumed that a couple shares driving responsibilities.

A Driver’s Age

The cost of car insurance is typically more expensive for drivers under the age of twenty-five because they are considered more of a risk due to reckless driving and a higher number of auto incidents within this age group. Therefore, they are usually more expensive to insure than older age groups.

Understanding the variety of factors that are taken into account when determining a driver’s insurance rates can help you be better prepared to save money on your policy. You will want to work closely with your insurance agent to see if you potentially qualify for any policy discounts or bundling packages that can help decrease your insurance costs. If you have questions about insurance in San Diego, CA, contact Windfall Insurance Services Inc. today for a consultation