Car Insurance: Single Young Man? Expect High Premiums
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Car Insurance: Single Young Man? Expect High Premiums. When you are in the market car insurance and are checking out car insurance quotes online you may wonder just how a regular car insurance premium is really calculated.
You may wonder about how exactly do car insurance companies
factor for when setting how much they are going to require for a premium.
With each car insurance company you’ll find that they all
have their own methods of calculating car insurance premiums. Each one has
their own set of risks they take into consideration and this makes it difficult
to figure out exactly how the premium is determined.
However, there are some similarities that can be found. For
example, most car insurance companies will calculate a portion of their rate
based on your driving record.
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Why is this important? Well, they figure that if you have a
poor driving record that means that you do not typically obey the traffic laws
and you’ll eventually be involved in a car accident. In turn they use this to
calculate your rates and increase them accordingly.
So if you have gone a long time without any insurance claims
whatsoever many insurance companies will give you very good discounts because
of this.
This is because you are a very good candidate to NOT be in the position to need to file an insurance claim in the future, and they will reward you by offering you premium discounts on your car insurance. Another factor in how car insurance is calculated is your credit history.
Why is this an important factor?
Your credit history is an
indication of your level of responsibility and your ability to pay your bills.
In some of the car insurance companies’ formulas they tie
that responsibility with how responsible you’ll be in paying your premiums to
them. If your credit rating is above “Fair” this will help with your car
insurance premium. If your credit rating is bad this will raise your monthly
premium.
Your car also is a factor used to determine your rate. An
expensive car is also usually expensive to repair. Also sports cars and exotic
vehicles are more prone to accidents and high repair costs, especially in the
hands of teenage males.
You can reduce your premium by accepting some riders that
reduce your alloted annual mileage.
Also high-theft cars are also prone to higher premiums. If
the car you own is a target for thieves because of the high demand for parts
you could see a rise in your premium to cover that risk.
Always check with your insurance agent before you purchase
your new car to avoid any unpleasant surprises after your purchase.
Those are just a few of the factors that can determine how
much you are charged for car insurance. This is covered more in auto isnurance
for more information. Visit Car Insurance Reviews also provides reviews of the
top car insurance companies on the market today. (*)