Not everything is so mysterious in the area of insurance business. If you think, that your insurance agent is a magic man, who asks you some informal questions and then makes some mysterious calculations and later tells you the amount of monthly payments – as on a wave of a magic wand – then you are mistaken.
He is just a professional, who knows, how some facts from your biography influence the rates you pay.
As for your new sparkling vehicle, there are several mysterious secrets that will help you to estimate beforehand how much it will cost for you to support this iron beauty. How old are you? Where are you from? Are you married? How long have you been a licensed driver? Simple questions that your insurance agent so occasionally inserts in your informal conversation can tell him a lot about your experience, reliability, attitude to your duties and – that is much more important – about your paying ability. Later he will name the figure – as a sentence to you. What calculations did he make to find out that figure?
Here are the secret factors that influence your rate.
How Old are You? Car Insurance Rates by Age
We have three persons. The first one is 18, the second one is 35 and the third one is 63. Who will get the lowest car insurance rate? If you have told that the person of 35, you were right. Your insurance agent will calculate the lowest rates for the driver between 30 and 40. And it is not his magic trick or evil will, it is statistics. According to statistics, 11% of fatal car accidents are caused by drivers from 15 to 20. Even if you are a young driver, don’t get upset, when you read it. It is normal, because you don’t have enough experience and you are too emotional and active, to be attentive on the road. But your insurance agent will consider you as the highest risk to his company and make pay more every month for the vehicle you have bought (or were given by your parents). Thus you see, that the agents calculate car insurance rates by age.
Drivers from 30 to 40 have spent many years on the roads of USA and have leant a lot. They know what to expect from other drivers, they don’t drive too fast, if feel tired, and react fast if some other driver is not careful on the road. These people are reliable and insurance agents know about it. They will get the lowest rates.
But after 60 years old people get older and inattentive. Their eyesight becomes worse and their reaction becomes slower. They will get higher rates than drivers of 30. They are not as risky as teenagers but still they are not reliable and will pay more.
Where are you from? Car Insurance Rates by State
I am sure you remember this question from childhood. But your insurance agent doesn’t want to remind you about your young years, he wants to calculate your rate. The state, where you live, and the rate that you will pay, are closely connected. If you are from New Hampshire or Florida – you can relax. The rate will be as low as possible. The legislation in these states presumes the lowest premiums for car owners. Car insurance rates are really inexpensive there.
The lucky people live in Ohio and Idaho. The rates there are lower from year to year. But car owners from Washington and Montana have to open their wallets – they will pay much more.
The most expensive state in USA for liability car insurance is Michigan. In 2015 it occupies the top place in the list of the states with expensive car insurance policies.
So, if you dream to make your policy the least expensive, you can move to Ohio or get the least expensive car.
How Much is your Car? Car Insurance Rates by Car
You are proud of your iron friend – bright and new – and feel a slight delight, when you think about yourself on the road. In fact, insurance companies distinguish car insurance rates by car.
So, proud owners of Jeeps, get ready! If you dream about best car insurance rates, you can forget about it just now. The owners of these iron horses will pay at least 10 times more than those, who bought cheaper vehicles. In fact, the cheaper cars are easier to repair, so they will get lowest car insurance rates. Fair it is or not, but having Jeep is quite costly – and your insurance policy for this car is not an exclusion.
In general, the newer and the more expensive car you have bought, the more you will pay every month to protect it. Insurance agents are sure that renewal of this model of the car (and replacing it in case of complete destruction) will make their company a bankrupt. That’s why best car insurance rates are offered to the cheaper cars.
For drivers, who are lack of money or simply want to save the funds, it is desirable to become an owner of a compact Fortwo Pure. And keep in mind that small smart cars will cost you less and will look elegant on the road. If you drive this model of the car, you can count on lowest car insurance rates.
Sport cars like BMW are declined to be expensive to insure. In fact it is so, because they are extremely fast. The higher speed you can develop, the more dangerous you can be for the others. So if you like to drive fast – open your purse and pay!
Finally, if we compare car insurance rates, we can see, that the lower rates depend on the age of the driver, his driving experience and history. Of course, if you have some car accident – or several of them – in your driving biography, you must be ready to get much higher premiums.
Besides the owners of beautiful and expensive cars will pay for the glamour they have, as it is very expensive for the insurance company to make your broken car beautiful again.
And the rate depends on the area you live. There are states with extremely low rates and those, where to own a car costs a pretty penny.
If you know these small secrets of calculation of the monthly rate, you can sign the best deal. So your insurance agent is not a magician, but he can help you to compare insurance rates and find the best insurance company for you. Just find the right magician – and your fairytale will become true.
Care about your vehicle, get insurance policy and be attentive on the road! Insurance business is not so dark and it gives you that sweet feeling of protection that we appreciate so deeply and that is so hard to find in our too modern and too quick world.