Being a parent is one of the many things that can affect your car insurance premium.
How Car Insurance Premiums are Determined
When shopping around for car insurance it is important to keep in mind the things that impact your premiums. Some of these are beyond your control, but it is a good idea to be aware of the ones you can change.
Credit Score
This may be the biggest factor that impacts your insurance rate. Your credit score is a bigger influence than any discount you might qualify for. Most insurance companies will take your credit score into account when deciding what to charge you for your premium. Getting your credit in order can be a good place to start when trying to lower your insurance rate.
Driving Record
Insurance companies want to insure safe drivers that do not have a history of car accidents or tickets. Even if you were not at fault for an accident, your insurance rates may increase. If you have been accident-free for over three years, though, you should ask your provider about a discount.
Occupation
You may not have known that your job may impact your insurance costs. Insurance companies have found that some occupations have safer drivers than others. Their research shows that paramedics, airline pilots, nuns, and insurance underwriters tend to be safer than the average driver.
Being a Parent
If you have a big life event happen, you may want to contact your insurance provider. Some companies will cut your insurance rate if you recently had a baby.
Homeowner
Owning your own home impacts your insurance rates. Not only is there a possibility that your rates will go down for simply buying a home, but if you use the same company for your car insurance coverage as you do for your homeowners insurance, you may get an even better rate.
The Car You Drive
This is the biggest factor you can control. Car insurance companies look at your car’s safety rating, how large the vehicle is, the age of the car and how likely it is to be stolen. They also consider the price of the car and how expensive it would be to repair the car if it was in an accident. Generally, the more expensive the car the pricier your insurance will be.
Age
It may seem completely unfair, but your age is a factor in determining your insurance rates. Insurance companies have found that drivers under 21, or with 5 years less driving experience, are more likely to be in accidents or get tickets than those over 21 or with more experience driving. Your premiums should go down after you turn 21 if you have no accidents or tickets. But once you turn 70, you may see your rates increase.
Use of Car for Business
Do you drive your own car for work? Are you on the road a lot? If you are an outside salesperson, ice cream truck driver, journalist or simply put on a lot of miles because of your job, your premiums can go up.
Paperless Billing
Are you still getting all of your insurance statements mailed to you? If you switch over to paperless billing you might be able to get your premium lowered. Add on electronic/automatic payments and you could save even more.
Where You Live
While you may be a terrific driver and do everything right, the neighborhood you choose to live in can impact your rate. Because the majority of accidents occur near home, insurance companies look at accident rates, break-ins, and car thefts for your area. It can also be more expensive to repair damage to a car in certain areas than in others.
Now that you know some of the factors that can impact your car insurance rates, you can take control of the ones you can change, like your credit score. Ask questions when you sit down with your insurance agent to find out more about what is impacting your insurance rates.
