Finding stable auto insurance rates is a challenge that many drivers face, and this is because auto insurance companies assess multiple factors while determining your risk level. Finding auto insurance premiums that align with your budget may be more difficult if you are considered a high-risk driver.
To help guide you through the process, here is a look at some common factors influencing your car insurance rates.
- Credit Score
Research shows that drivers with good credit scores practice safe driving habits and rarely file claims. For that reason, many auto insurance companies assess your credit score to determine your insurance rates. However, some states prohibit insurance companies from using credit scores to help calculate insurance premiums.
- Driving History
Auto insurance companies assess your past 3-5 year’s driving record. Your driving record includes previous traffic violations, at-fault accidents, and DUI/DWI convictions. You can expect to pay substantially higher auto insurance premiums if you have several violations on your record. Auto insurance companies may sometimes decline to cover you completely. If you cannot find insurance, you may be forced to purchase non-standard car insurance or coverage through your state’s risk pool.
- Deductibles
Your deductible also impacts your car insurance rates. Your policy deductible is the amount you pay towards the damages before your insurance covers the remaining balance. If you choose a higher deductible, that will lower your car insurance premiums.
- Driver’s Age & Experience
If you are a young teenage driver, insurers will charge you higher car insurance rates because you will be seen as a high-risk driver. Research shows that young and inexperienced drivers are more likely to be involved in a serious car accident.
- The Type of Coverage You Add to Your Policy
The type of coverage that you add to your policy is one of the biggest factors determining your car insurance rates. You are legally required to add liability coverage to your car insurance policy. Liability coverage protects you if you are responsible for injuring someone or causing property damage in a crash. From there, you can add as much coverage as you want. It’s recommended that you avoid relying on minimum coverage as that could leave you vulnerable in the event of an emergency. Most drivers add collision and comprehensive coverage. This ensures you are covered if your car is stolen or damaged in an accident. Adding medical expense coverage is recommended as it takes care of your medical bills if you are injured. You can also add other coverages to your policy, such as roadside assistance and rental reimbursement.
- ZIP Code
Insurers access your ZIP code to analyze the frequency of accidents that occur in the area, weather-related claims, and car theft rates. If you reside in an area with a high car accident and theft rates, you’ll likely pay higher car insurance rates.
- Vehicle Model
Insurers also base their assessment on your vehicle model. If you drive a vehicle with a high theft rate, high repair costs, and a record of past claims, your car insurance rates will increase.
Consult with Hoffman Brown Company
If you are unhappy about your current car insurance rates, establishing a track record of safe driving is the easiest solution, which will help lower your premiums. Also, you must contact your insurer to see if you qualify for any discounts that can help lower your rates. If you have any questions regarding car insurance in CA, contact the team here at Hoffman Brown Company, and we will assist you.
