Does Mileage Affect Auto Insurance Rates?

Your monthly or annual mileage can affect your auto insurance rate in your policy. Most insurance companies have statistics that reveal a correlation between auto accidents and claims and the miles you drive.

Common Factors that Influence Auto Insurance Rates

Along with your typical mileage, other factors can influence insurance rates. Among these factors, the following have the most influence, for better or worse.

  • Moving violation traffic tickets. In most cases, non-moving violations, such as parking tickets, have little or no effect on your auto insurance rates. Moving violations, however, such as speeding tickets, will increase the rate you pay. Since moving violations statistically lead to more car crashes, the rates for coverage are higher.
  • Number of claims filed. Along with the high cost of serious claims, even minor claims generate cost, as insurance companies must designate personnel to administer claims and pay for minor "fender benders."
  • Size of deductibles. Since you, the insured, assume more risk when selecting higher deductibles, your policy rates are typically lower. The smaller the deductible, the more you’ll pay in premium costs.
  • Location. Your zip code influences your auto insurance rate. For example, if you live in a rural area, you’ll typically pay lower rates than your brethren that live in highly populated cities.

Mileage and Insurance Rates

Groups, such as AAA, the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS), compile statistics on auto accidents and miles driven. With a focus on highway and specific automobile model safety, their statistics also tend to verify the perceived correlation between mileage and the number of auto insurance claims.

For example, the IIHS performs crash tests on new and older car models to rate their safety. Their results are available for organizations in the insurance industry. Whether you drive a vehicle that IIHS rates as safe or not, the more mileage you accumulate each year, particularly in densely populated cities or suburbs, the more likely you are to have an accident.

The best way to save money is to get multiple quotes from a variety of highly rated insurance companies. Getting online policy quotes from multiple companies from independent agents will give you the information you need to select the best, most cost-effective coverage. Since mileage can affect your premiums, getting up-to-date information from various companies helps you save money and have sufficient protection.

How are Auto Insurance Rates in a Particular Areas Determined?

There are many factors that go into determining the cost of an auto insurance policy. The total amount a consumer pays is based on the potential amount of risk seen by the insurance company. The total risk takes into consideration the driver, the vehicle and the geographic area where the vehicle is registered and driven. Understanding the geographic risks may help consumers locate the best insurance for their needs.

Claim frequency of a defined group:

Groups can be defined by driver’s age, experience, marital status and the particular area of residence. The location factor will take into consideration the number of claims for the area and the dollar value of the claims. Location is normally referred to as territory and the territory group looks at a few specific factors.

Number of vehicles on the road:

Residents in larger cities may find higher auto insurance rates than those in rural locations. As the number of vehicles on the road increases, the potential for accidents increases. Insurers will look at the number of vehicles per square mile. While a consumer may not be able to control the location, a discount may be available for drivers that carpool. If the vehicle is not used on a daily basis, the insurance rate may be reduced.

Value and repair costs for vehicles:

The overall value of vehicles in some territories may be a factor in that group’s rate. Certain locations have a larger number of high-end vehicles on the road. Repair costs may also be higher for particular areas. These factors might not make a large difference in how the insurance rate is determined but can be a consideration.

Theft rates:

Certain locations have higher rates for auto theft. These particular areas are usually urban. Even if a vehicle is not being insured against theft, the potential for damages may increase the costs. This is one factor that a consumer may be able to influence if the vehicle is equipped with reliable anti-theft devices.

Fraud:

Unfortunately, a particular area may have a higher rate of insurance fraud. Areas that are experiencing a heavy economic downturn can be seen as riskier to an insurer.

To fully understand the factors that affect how auto insurance rates are determined, speak with an agent. A professional will be able to find the best auto rate for a particular area and the other factors combined to quote the insurance cost.

Effects of Driving Under the Influence on Your Auto Insurance Rates

Your life changes when police officers pull you over and charge you with driving under the influence. A DUI can result in the loss of your license. You might face a significant fine. And you’ll have a serious crime on your record. But what are the effects of driving under the influence on your auto insurance rates?

In short, you’ll pay more for car insurance if you have a DUI on your driving record. And the odds are good that you’ll pay a lot more.

Insurance companies charge higher rates to drivers whom they consider to be high-risk. This makes financial sense; high-risk drivers are more likely to suffer serious car accidents that require big payouts from their auto insurers. Insurance companies view drivers with DUIs on their driving records as high-risk drivers, and will charge them higher rates.

The more difficult question to answer? How high will your particular rate climb after a DUI? Insurance companies consider several factors when determining how much each of their customers pay for insurance. Customers’ driving records are just one part of a bigger equation.

For instance, auto insurers tend to charge drivers less if they install a security system on their vehicles. Others provide lower rates for customers who leave their cars at home during the week and take public transportation to work. Drivers who live in zip codes with less car thefts will pay lower rates, too.

If you want to know the exact effects of driving under the influence on your specific auto insurance policy, you’ll need to call your insurer. Only by talking with your insurance agent they will you get an accurate picture of how your auto insurance rates will change.

One thing is certain, though; once your DUI becomes official, you can expect your auto insurance rates to rise as your insurance company moves you into the high-risk-driver category.

Will My Insurance Rates Go Down If I Get Married?

Will My Insurance Rates Go Down If I Get Married?Based on several studies supporting the presumption, married couples are generally granted lower auto insurance rates due to the fact that they are typically more responsible, less likely to drive recklessly, and less likely to encounter auto accidents and traffic violations. However, the benefit of lower insurance rates will only apply to the extent that both parties in the couple have fairly good driving records. Personal driving history will usually have the biggest impact on insurance rates, which means that getting married likely won’t reduce your insurance rates dramatically if your driving history is filled with accidents and multiple filed claims.

Although you shouldn’t expect a huge drop, your insurance rates will noticeably decrease with any positive lifestyle event that may testify to your maturity. For example, you should always notify your insurance agent when any big milestone occurs, such as graduating college or having a baby. These milestones indicate that you are much less likely to file an insurance claim, which will be rewarded by your insurance company in the form of lower premiums. Alternatively, if your fiance or spouse has a poor driving record, this could negatively affect you both in terms of your auto insurance rates. Both of your rates could further be affected if one partner continues to get tickets or get into auto accidents. For this reason, it’s important that both parties encourage one another to drive responsibly to avoid insurance hikes.

As a newly married couple, you can also receive insurance discounts by placing both of your vehicles under one policy. This would qualify you for a multi-car discount, which would result in lower rates overall. If you and your spouse have different auto insurance companies, it is always more financially beneficial to combine your auto insurance policies under one company. Another good tip is to combine all of your other insurance policies, such as homeowner’s insurance and commercial insurance, to enjoy savings on these policies as well.

Age, Location, Status. 3 Things that Influence Your Auto Insurance Rates

Factors Affecting RatesIt’s easy to feel like you’re being stereotyped when you make an attempt to compare automobile insurance and are quoted a price that seems a bit outlandish—especially if you’ve got a clean driving record, don’t drive a high profile sports car, and don’t have any plans on challenging others on the road to impromptu drag races. But the fact is, there’s a lot more to landing cheap rates when doing an auto insurance comparison that doesn’t include your driving history or what you drive.

For example, did you know…

• Your age has a lot to do with the price you’ll be quoted when you compare automobile insurance. It’s true. Men under the age of 25 always pay higher rates because statistically, they’re far more likely to be involved in accidents and are a higher risk to the insurer.

• Where you live greatly impacts the cost of your premium. If you live in an urban area, you’re going to end up paying much more than someone of your same age and driving history who lives in the country. The more cars there are around you, the greater risk of you being hit—and therefore, you’ll be quoted a higher rate when you run an auto insurance comparison.

• If you’re married, you’ll pay less. Again, it’s all about statistics, and married men and women tend to be more “responsible” behind the wheel and are therefore involved in fewer accidents.

Although there is a lot you can do to lower your car insurance rates, in some cases the only thing you can do is wait for the passage of time. Either that, or move to a less densely populated area. But before doing so, make sure that the money you’ll save on car insurance will be worth the cost of your move. Otherwise, you could end up worse off—or no better than you were before.

Age, Location, Status. 3 Things that Influence Your Auto Insurance Rates

It’s easy to feel like you’re being stereotyped when you make an attempt to compare automobile insurance and are quoted a price that seems a bit outlandish—especially if you’ve got a clean driving record, don’t drive a high profile sports car, and don’t have any plans on challenging others on the road to impromptu drag races. But the fact is, there’s a lot more to landing cheap rates when doing an auto insurance comparison that doesn’t include your driving history or what you drive.

For example, did you know…

• Your age has a lot to do with the price you’ll be quoted when you compare automobile insurance. It’s true. Men under the age of 25 always pay higher rates because statistically, they’re far more likely to be involved in accidents and are a higher risk to the insurer.

• Where you live greatly impacts the cost of your premium. If you live in an urban area, you’re going to end up paying much more than someone of your same age and driving history who lives in the country. The more cars there are around you, the greater risk of you being hit—and therefore, you’ll be quoted a higher rate when you run an auto insurance comparison.

• If you’re married, you’ll pay less. Again, it’s all about statistics, and married men and women tend to be more “responsible” behind the wheel and are therefore involved in fewer accidents.

Although there is a lot you can do to lower your car insurance rates, in some cases the only thing you can do is wait for the passage of time. Either that, or move to a less densely populated area. But before doing so, make sure that the money you’ll save on car insurance will be worth the cost of your move. Otherwise, you could end up worse off—or no better than you were before.

When it Comes to Quotes for Auto Insurance, Honesty is the Best Policy

Get Right QuotesIf you’ve ever driven past a car lot while it’s closed and have spied the occasional lone figure roaming between cars checking price tags, you’re probably witnessing the lengths to which some people will go in order to avoid a sales pitch. That same sentiment bleeds over into those who’d rather seek out quotes for auto insurance online than anywhere else. Simply put, it’s the best place to go to compare auto insurance rates without being forced to endure the salesmanship that comes with talking to an agent face to face or by phone.

But are online quotes for auto insurance accurate? Truth be told, they’re only as accurate as you let them be. If you’re looking to compare auto insurance rates and want absolutely zero uncertainty about the validity of the quote you’re given, all you have to do is do what your parents taught you to do: tell the truth.

Being straightforward and honest about your driving record won’t hurt your chances of getting insurance coverage, but lying about it can cause delays, not to mention a much higher rate than the initial online quote. If the comparison engine asks you if you’ve had any accidents or tickets, fess up. If you fudge the numbers on the initial pass, you’ll probably get a lower quote. But your driving record is always double checked before any firm offers are made.

There are plenty of methods of lowering your car insurance, but being less than forthcoming about the facts is not one of those ways.

How to Find Affordable Home and Auto Insurance

You Can Afford !With homeowners insurance rates rising an average of five percent every year and car insurance rates not far behind, finding affordable home and auto insurance might seem like a challenge. Fortunately, you can quickly and easily find what you’re looking for with insurance quote comparison sites. These websites are specifically designed for comparing insurance so consumers can take advantage of online home and auto insurance rates while still getting the coverage they need.

Selecting Home and Auto Insurance
When selecting home and auto insurance, it’s important not to sacrifice service and coverage for low rates. The last thing you want when you’re involved in a collision is for your insurance company to be unavailable and then, when you do reach them, to find out you don’t have sufficient coverage to pay for the necessary repairs to your vehicle. However, when you use a trustworthy insurance comparison site like AgentInsure, you can rest assured you only get quotes from reputable insurance carriers that offer top-notch service and sufficient coverage. In addition, with AgentInsure, you always receive the name, phone number and email address of a licensed and experienced insurance agent in your area. That way, you have a live person you can contact to discuss any concerns or questions you have about your coverage. He or she can also help you make changes to your policy if necessary, such as lowering your annual mileage because you’ve started working at home two days a week or raising your collision coverage because your wife is expecting a baby. No matter what type of coverage you’re looking for, with AgentInsure, you can be sure to get the maximum coverage at the lowest rates!

Don’t Forget the Broker

Do not Forget !Shopping for auto insurance or homeowners insurance in California can be a very time-consuming activity. California auto insurance rates and California homeowner insurance rates can vary widely by insurer. There are so many insurance companies that do business in California that an individual may never know if he or she is getting the best deal possible.

One of the ways to avoid all of the confusion of trying to compare different insurance companies is to go to an insurance broker. An independent broker or a broker that only represents one company can be a great source of information when you need to buy insurance.

Brokers are well trained in all aspects of the insurance products that they sell. They must pass vigorous tests and receive a license from the state that certifies that they are qualified to sell a particular line or lines of insurance.

A California auto insurance or homeowners insurance broker can intelligently discuss all of the different types of coverage that might be appropriate for your particular situation. If you have any questions about whether it is wise to buy comprehensive coverage on an old car or what you can do to lower your premiums on your California homeowner policy, your broker can certainly answer them for you.

Going to an Independent Insurance broker in California is a little different than going to a broker dedicated to just one company. You will usually get a lower rate through an Independent broker because they deal with many different insurance companies. On the other hand, dealing with a single, national insurer may provide you with more stability and a wider array of insurance product.

So, in conclusion, if you do not like doing research and do not have the time to shop around, a broker may be the best choice when you need California insurance. You do not pay more for using the services of a broker than doing it yourself. It is also nice to know that you have someone to call just in case you have a problem with your insurance.

Five Factors that Affect Your Home and Auto Insurance Rates

Consider the FactorsHave you ever wondered how insurance companies determine home and auto insurance rates? Naturally, the types of coverage you have and the amount for which you’re covered play a large part, but insurance companies look at more factors than the combined costs of, for example, bodily injury liability and collision insurance. What follows are five factors that affect your home and auto insurance rates.

  1. Marital status. Whether you’re single or married plays a large part in determining your insurance rates. In general, married customers are perceived to be more stable and less of a financial risk than single people, so they get lower rates.
  2. Number of dependents. If you have a family that depends on you, you’re more likely to behave responsibly, which results in lower rates. However, you probably also want more coverage to make sure your dependents are taken care of in the event of a major accident, so that can result in higher premiums.
  3. Property value. No matter whether it’s your car or your home, its replacement value is an important factor in determining your insurance rates.
  4. Location. Where you live is important for a number of reasons: crime rates, natural disasters, and distance to fire and police stations. Obviously, the safer your location, the lower your insurance rates.
  5. Your credit score. In all but three states, insurance companies consider your credit score as an indicator of your financial responsibility. A high credit score results in much lower insurance rates.