No, your insurance rates won’t change if your new car is painted red. Indeed, many factors that go in to determining a driver’s insurance rates are invariable. That’s not to say you can’t have an impact on lowering your rates.
#2: Your circumstances
#3: Your fast past
#4: Your painful past
#5: The drive
#6: When you drive
#7: When you didn't drive
#8: Where you're parking and driving
#9: What you're driving
#10: How you're covered
To an insurance provider, you are a male or female who was born on a specific day in a particular month of a year sometime in the mid-90s or earlier. Insurance companies view men and women differently, just as they see the young and young-at-heart differently. You call it sexism and ageism. They call it good business.
There are other ingrained elements which are, or were, changeable. The year in which you were licensed (and thus, the number of years you’ve been licensed) speaks to your experience as a driver. Your marital status, particularly if you’re a man under 25, will also play a role. Marriage can mitigate the damage being a young male can inflict in a group generally believed to be full of riskier, more accident-prone drivers.
While an initial traffic violation or speeding ticket may not negatively impact your future insurance premiums, continuing to behave in a way that attracts police officers will jack up rates. With infractions, payment is required twice: first at City Hall and again when next year’s rates kick in.
Regrettably, nothing will impact your premium quite like an at-fault accident or three. A record free from collisions is to insurance premiums what fat-free cream cheese is to your waistline.
What’s the photo above about? “Marc Keinath’s crushed 2004 Chevrolet Malibu sits in the lot at Leonard’s Auto Works & Towing Friday, January 21, 2011, in Montrose, Michigan. Keinath miraculously survived an icy encounter with a tractor-trailer this week, but his 2004 Malibu didn’t. Keinath, 30, of Millington, Mich., was driving his Malibu along Interstate 75 in Genesee County, Mich. when he encountered a patch of black ice and spun out. When he regained control of the car, the tractor trailer hauling 20 tons of sugar smashed into the rear of Keinath’s Malibu before falling on top of it. As parts of the roof of the Malibu began to yield under the tremendous weight of the trailer, Keinath fully reclined his seat to give him more room inside, reached for his cell phone and dialed 911. He walked away with no serious injuries. (Photo by John F. Martin for Chevrolet)”
GPS-based insurance isn’t yet commonplace, but that doesn’t mean insurers won’t care how much or how little you drive. You’re much less of a risk to an insurance provider if you’re on the road less than the average driver.
Consider how frequently you hear about traffic accidents during rush hour. There are more cars on the road. Those cars are driven by a frustrated, impatient lot. If commuting doesn’t make up a portion of your yearly driving mileage, insurance companies will respond favourably as your daily routine poses less of a risk.
Picture a driver who acquired his or her license at the ripe old age of 16. Ten years later, this driver has usually ridden a bike to work, taken the bus to the grocery store, and rented a car when necessary. No insurance policy with their name ever existed. Those licensed years mean next to nothing given what appears to be an inexperienced driver. The insurance companies don’t care that you somehow managed to avoid incidents while riding a BMX.
Add to the mileage and commuting issues the concern over locale. Aside from the probability of theft in an area with more crime, risk also rises with population. To put it bluntly, greater density indicates more vehicles with which you could potentially collide.
Can’t decide between an $80,000 roadster or a $20,000 sedan? Generally speaking – and there are exceptions – more expensive models cost more to insure. The theory goes like this: a premium-priced car will likely cost more to repair or replace. Certain models are also more likely to be stolen.
Other cars may keep occupants healthier in case of an accident or be particularly cheap to repair while perhaps causing less damage to opposing vehicles. Once an insurance provider has your information, calculating rates for different vehicles is easy and could make your car-buying decision simpler.
The higher the deductible; the lower your rate. Other than minimizing or maximizing your deductible, methods remain which will shrink or enlarge your insurance premium. You probably don’t require maximum coverage on a decrepit high-mileage rustbucket.
If you want the sort of coverage that will pay for curb and asphalt repair at the collision site, there’s probably an insurance company that will write it in to the policy. Simply put, greater coverage equals higher payments. Be on the lookout for discounts through your profession, house/tenant insurance, or even travel rewards programs.