At Imes Insurance Associates, having the proper coverage and limits comes first. With that said, we also understand that people want a good value as well. To help people find the best value, there are a number of things that need to be considered.
There is no such thing as flat rate car insurance; and since insurers use different formulas to calculate rates for different drivers, virtually no insurance company will offer the lowest rates for every driver across the board. The fact is insurers weigh risk factors differently. A one-year-old speeding ticket on your driving record, for example, might be penalized by one insurer and overlooked by another. The key is getting matched with an insurance company that will be most favorable toward your individual risk factors and perhaps offers you incentives based on the positive variables within your profile.
Your Demographics
It might not seem relevant, but some of the things that are the most difficult or impossible to change are also the things that can affect the cost of car insurance. Insurers can alter your rates based on your age, gender, marital status, and even where you live. Young, unmarried males, for example, tend to be in more accidents than older, married women. Likewise, living in certain areas can affect a carrier’s risk of insuring you. Drivers in urban areas, for example, are at higher risk of being in an accident. Similarly, you might be at higher risk of a claim if you park your vehicle in an area with a high rate of theft or if the average cost of car repairs are higher where you live.
Your Finances
Maintaining good credit has its rewards, and they go far beyond better interest rates on your mortgage. Often, car insurance companies review driver credit reports for red flags that could be a sign of careless behavior. Likewise, they may view low debt balances and a history of on-time payments as signs of responsible habits. Since data supports the correlation between a driver’s credit and their risk of future claims, it is reasonable to assume that the higher the credit score, the lower the insurance premium.
Your Vehicle
What you drive can have a significant impact on your car insurance. Insurers consider many factors when it comes to your vehicle, including its safety features, the cost to repair it, and the odds of it being stolen. For example, a vehicle with air bags and a high safety rating might lower the risk for driver and passenger injury in a car accident, which could save the insurance company money in the long run. Similarly, vehicles equipped with anti-theft devices might deter a would-be thief.
Your Record
Perhaps the most important factor in the cost of car insurance is a driver’s personal record. Insurers assume that you will continue to behave in the future as you have in the past. If your driving record indicates multiple speeding tickets or a DUI, you could be labeled ‘high-risk’. Likewise, if you have a history of making multiple claims – even small ones – in a short period of time, insurers may assume that you will continue to do so in the future. If you are approved for coverage despite these factors, you may be penalized with higher rates. On the other hand, you may be offered discounts if you have not made any recent claims or if you have a spotless driving record.
Talk to an Independent Agent
Imes Insurance Associates knows that the quality of your coverage comes first when it comes to car insurance. However, we also know that a great policy should not cost more than it has to. Our job is to ensure you are fully covered with insurance solutions that work for you. Contact us today for more information or to request your quotes. We look forward to serving you soon.
