You know that accidents can increase your car insurance rates as well as being a young or inexperienced driver, but there's more to it than that. Car insurance companies use very complex models to try to predict your risk of getting into an accident. Here are some of the other things that they look at.
What kind of job you're in can have a big impact on your car insurance rates. Even if you're not driving for work, and most personal car insurance policies don't cover business driving. Car insurance companies think the job you have tells what kind of risks you take.
For example, they might consider an accountant a rule follower but a pro athlete as someone who is more likely to take risks and speed.
If you don't have a job and are still in school, insurance companies often look at your grades. It's the same theory as having a job that's perceived as being held by people who don't take risks. A good student is responsible enough to be a safe driver.
Your Credit Score
Your credit score can also be a sign of responsibility but that's not what insurance companies are really looking at. In addition to figuring out if you're likely to get involved in an accident, they want to know if you're likely to file a claim.
Someone with strong credit is more likely to have the financial resources to cover minor incidents. That means instead of filing a small claim, they might just pay it themselves instead of worrying about a rate increase. This means fewer claims paid and less administrative costs for the insurance company.
You probably knew that different cities and states have different insurance rates, but even living a block or two over can drastically change what you pay. This is often due to higher rates of car thefts or accidents within a certain area. Sometimes, it might be because you share the same zip code with a dangerous intersection that you never drive through.
Another way your address might come into play is if you live right on the border of a flood zone. The only way to know for sure is to check quotes for a new address before you move.
All car insurance companies use their own formulas and weight some things more than others. Talk to a local car insurance agency like Germain Insurance Agency to find out where you can get the best rate for your circumstances.
After we had kids, we realized that we needed to up the ante on our insurance coverage. While we had a policy in place, I knew that we had to do something to make sure that we were protected in any instance, which wasn't the case at the time. I began talking with different brokers about what we could do to improve our coverage, and they had some really great suggestions that seemed to help. This website is here to help other people to know how to purchase insurance, and what kinds of policies would work best for your special family.