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Once you decide to buy a new insurance package, you need to know the factors that insurance companies use to determine how much your car insurance.
Usually we are too attached to package your car insurance, or we simply just too lazy to buy a new insurance package. And the complacency could cause us to lose money.
Index Shopping recent car insurance company's credit rating TransUnion found that only 15% of the money was to compare motor insurance companies to buy a new car insurance in the last year.
JD Power data also confirm these results. Company researchers have noted retention rate car insurance package in the industry up to 90%, and research needs car insurance in 2013 by the company showed that only 23% of customers buy car insurance for 12 months, the lowest rate in six years.
All the above data shows that most of the drivers could be paying too much for your car insurance package. Once you decide to buy a new insurance package, you need to know the factors that insurance companies use to determine the tariff for you.
10 factors that insurance companies use to set the premium car
1. The type of insurance and car insurance you need more or less
Go buy car insurance can cause boredom, almost all experts assess how insurance shopping online is the way the first choice to reduce your premiums.
According to a report by comScore 2013 US Online Auto Insurance, car insurance online is the most popular way to search for a new insurance policy package, with 67% of respondents said that they found a quotes over the internet.
The insurance company valuation various risks, therefore, can have a very big difference in the price premium. That is why the experts recommend that you get premium quotes from multiple insurance companies as possible, and should turn your computer into a useful tool to help you reduce fees insurance to pay. Computers will help you find the insurance of insurance companies quickly, easily and at a time convenient for you.
You should see the market price at least once per year
Penny Gusner analyst consumers, recommend that you purchase insurance at least once a year. "But before each renewal contract period (every six months), you should regularly quotes to make sure you always have the cheapest insurance premiums."
It is especially important to buy insurance if a penalty ticket or a motor vehicle accident cases are removed from your profile. "This will make you more attractive to many insurance companies," said Gusner. Changes in life is also a reason to buy a new insurance. The married, adding a new drive or move into a new neighborhood, can provide a lower premium.
Before you turn on the computer and start collecting quotes, you should define the limits of the insurance policy for his ideals. The minimum insurance limits will vary by state, but often is not enough to protect you most certainly.
Recommendations for the deductible and the amount of insurance
Gusner recommended, select the insurance package formula 100/300/50 in the area of responsibility, which is $ 100,000 per person, $ 300,000 per accident for liability related to the body and $ 50,000 liability for property damage.This is the compensation for bodily injury and property damage that others suffer in case you cause an accident for them.
You will also need collision insurance and comprehensive insurance if you want your car to be repaired after being knocked to another car or damaged by fire, vandalized, and have an animal or natural causes, such as hail.Comprehensive coverage also reimburse you for the value of the car, after subtracting deductions, in case the vehicle is stolen.
Please do not forget to take deductions. "While 500 USD is a popular option, you can still save money on your fees if you choose a higher deductible, such as $ 1,000," Gusner advice.
Deductions are applicable to the claim by the collision and comprehensive complaints.
2. The number of credit points
According to research firm Conning & Co., about 92% of insurance companies use your credit information as a factor to determine the fee, therefore, an index based insurance scores on an index Low credit score will increase your premium (unless you live in California, Hawaii or Massachusetts, the state does not allow to apply this calculation).
All are provided on risk issues. The study showed that people with bad credit tend to filing a claim more and more.Despite the increased costs can vary, believe that you will not pay more than 20% to 50% if you have a bad credit record.
3. Type of vehicle
Category of vehicle you are driving will impact on the cost price of your car insurance. The insurance company will be added to the declaration requires you to record types and models. As a result, if there are many more young drivers often cause accidents with vehicle type and model you are using, the fee you pay may be higher. You should have registered vehicle identification number (VIN) on hand when you want to buy a new insurance package.
4. The method used car
How you use the car also affect the premium. When you use your vehicle for business service, even a little work part-time as delivering pizza, you also need to notice this. If not, most likely the insurance company will refuse to pay if you have an accident during delivery.
If you have to travel long distances or frequent driving after midnight, believe that fees may apply to you a little bit higher.
5. The driver has a valid license
Make a list of everyone who holds a valid driver in your household, whether they have your driver or not. Ignoring someone among them could lead to the insurance company refused to pay or cancel the contract if the driver is not included in this list involved in a crash. As soon as your child has a valid driver's license, you must give their name to the list of your insurance contract.
Generally, there are two exceptions to the rule "list all those who have a valid driver's license in the family", when your child is still living with you who are old enough and have your own car, and your parents live with you, but they have their own car.
6. Profile driver
Your driving record says that you are a driver risks like. A pile driving record with penalty ticket or accident is an alarm for any insurance company.
The insurance company will check your driving record when you apply for insurance, and check once more, when you want to renew the contract. Believe that things will improve in violation fee you must pay within 3 to 5 years.
Hide this fact when purchasing insurance declaration, which is a bad idea. Gusner warning: "If you provide incorrect information on the application for the declaration of insurance, and the insurance company discovers this, the premium will be recalculated, or you may Companies cancel the sale of insurance for you ".
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| How to use your car to the significant impact of car insurance costs |
7. History of the claim and the insurance earlier
Accidents and tickets are not the only thing to do harm to charge your car insurance; the compensation claims are also likely to affect the premium. While claims by foul will result in an additional fee increase (or the higher insurance premiums) and comprehensive general complaints will not increase the cost, the number of times you still have complaints may bring negative consequences.
Once you've made a number of claims for compensation, for any content, with your insurance company in a short period of time, such as three complaints occur within three years, please believe that your premiums will be higher.Main large number of complaints will make you be judged as a higher risk capabilities, and increase your insurance premiums for at least 2 years to 3 years.
Proof of insurance verifying shows you've purchased insurance before the insurance package offered to buy new, is that the insurance companies will require you to provide. In most states, driving without car insurance is illegal, so the period of availability without insurance will make the insurance companies doubts.
8. Date of Birth / Age
Age also affects the cost of your car insurance, especially if you're young or old in the year. Statistics from the Insurance Institute for Highway Safety (IIHS), the rate of fatal accidents caused by the teenage driver is three times more than drivers over the age of 20.
On the other end of the ruler of age, older drivers tend to be more involved in the accident. CDC statistics show that the rate of fatal accidents increased from car crash at age 75 and at age 80 hikes.
9. Marital Status
Statistics show that married driving-related car accident less and less penalty than single people. In some cases, insurance companies will even reduce premiums for drivers under 25 years of age if they are married. Combined or pooled insurance policy with your spouse can also lower your insurance premium down.
10. Address
Where you live (and parking) will have a direct impact to the cost of your car insurance. The insurance company can about the area you are living longer than your complete. They study the crime rate, density living in the area, the number of complaints compensation occurs every year, and even the weather has occurred, to assess the level of risk to your the present.
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