Insurance companies use very complex formulas to calculate how much people should pay on insurance. For example, they use accident statistics to tell which people are more susceptible to get into accidents and adjust their quotes accordingly. Some factors are more obvious than others, like age and experience, but some of the things that could affect your insurance rates might surprise you. Here are some of the factors that will influence how much you pay on insurance.
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Where You Live
Your state, city, and even postal code will have an impact on your insurance quotes. If you live in a high-crime area, an area where there’s heavy traffic, or somewhere that’s densely populated, then you can expect to pay more. This also means that you’ll have to shop around more if you want to get a reasonable quote.
People in states like Florida, for instance, pay more insurance than people living in places like New Hampshire or Maine. As a matter of fact, Florida is in the top three states where insurance is the most expensive.
If you live in Florida and are looking for affordable Florida car insurance, we suggest you check out The Hartford. They’re one of the best car insurance Florida providers and offer all sorts of discounts depending on your situation. This is an especially great provider if you’re over 50 and have an AARP membership.
Where You Park Your Car
Many people may not be aware of this, but you will have to pay more for car insurance if you park your car outside than if you park it in an enclosed garage, and it makes sense. A car that’s parked outside is at a much greater risk of theft or vandalism than a car that’s in a garage. So, if you have an enclosed garage, expect to pay less on your insurance.
Your Marital Status
Insurance companies love married drivers, and they routinely pay less on their premiums. Data shows that married people are less involved in accidents, so they pay less for insurance. However, you should know that the difference in rates between single, married, divorced, and widowed drivers is minimal.
The Vehicle’s Make and Model
Insurance companies also have extensive data on which make and model of vehicle is involved in more accidents, and if you have a vehicle that is deemed to be accident-prone, then you might get penalized. Sports cars will cost more to insure than sedans, and cars from manufacturers who are known for having poor safety ratings will also cost more to insure.
These are only a few of the factors that affect insurance quotes, so we suggest that you learn as much about how insurance quotes are calculated as possible. This will allow you to make decisions that will drive your costs down.
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