When a car insurance company calculates the price for a policy that has been requested by a given customer, it takes many different factors into consideration. Most customers keep those factors in mind, when buying the vehicle that must be insured.
Factors that relate to the insured vehicle
• Year when vehicle was manufactured: Owners of new cars can expect to benefit from a new car discount.
• Make of vehicle: Basic model cheaper to insure. Cost of insurance greater for foreign cars; the parts are harder to obtain.
• Presence of air bags: That lowers the cost of the policy.
• Discount for car that has an alarm, if the owner has purchased comprehensive coverage.
Factors that relate to type of coverage requested
A family that requests liability coverage can expect to be given a multi-car discount. Outside of the exception given above, the more extensive the coverage, the higher the price paid by the policy holder. The amount of medical coverage needed decreases, if the policy holder already has health insurance.
Factors that relate to the insured car’s driver
• Most insurance companies offer a preferred rate, once the driver reaches the age of 25 years.
• Evidence of a good driving record manages to lower the policy’s cost.
• Price increases for a second driver. The cost increase for an occasional driver is not as great as it is for someone that uses the car on a regular basis.
• A policy holder with poor credit gets hit with a higher insurance rate.
• Long-time clients can expect to pay less for their insurance coverage.
• Some companies offer a lower rate to students that have good grades or to customers with a higher level of education.
Discount for homeowners that live in what is considered to be a “safe” neighborhood. An urban setting does not match with the insurance industry’s concept of a safe neighborhood. Proximity to a big city reduces the amount of safety that the insurance industry associates with any neighborhood that lies in a suburban area.
Factors that relate to the insured driver’s driving habits
Any personal injury lawyer in Delano and Dublin knows that evidence of a good driving record manages to lower the policy’s cost. The more frequently a driver becomes involved in an accident, the less chance that same driver has for being classed as someone with a good driving record.
After one accident, an insurer might tell someone with a good driving record to expect to be paying more for the existing policy, if the next accident occurs within a specified span of time. Once that span has ended, the company does not increase the price, even if the next accident happens just a week or two past the date stated previously, by the insurer.