subject: Tips You Need To Know About Car Insurance Rates [print this page] Do you wish you understood why the cost of car insurance can vary so much from person to person? If so, you are not alone. Many people wish that they understood more about how insurance rates are determined as well as what they can do in order to keep those rates as low as possible.
The whole idea behind car insurance costs is that the insurance companies want to make sure that you are paying enough that they are covered if you make a claim. In a way, you are paying into an account that builds up over time and which your claim money will come out of. However, if the company that is covering you thinks that there is a better than even chance you will be making claims on a regular basis, they are going to increase the amount of money you pay. In some circumstances, you may find that they refuse to cover you altogether.
Statistics are what really drive the cost of your insurance policy. There are a number of people who look at the number of accidents that may occur in any given area and the number of stolen vehicles as well. When it comes to accidents, for example, statistics show that with age and experience, the chances of having an accident will decrease to a point. Then, after a certain age they begin to climb. The cost of a policy will decline and increase according to these statistics.
It is only natural that if you are on the road more you will end up having a higher chance of being involved in an accident. This is why you are asked how much you drive on a daily basis. The more you do, the higher your policy will be. Geography also comes into play in this area since some areas have traffic conditions that make accidents much more likely. There will be higher insurance rates if you live in these areas.
Of course, car accidents are not the only reason why you may be making an insurance claim. Car theft can also cost car insurance companies a lot of money. When determining what your policy will cost, companies will look not only at where you live but what kind of vehicle you are driving as well. There are specific makes and models of vehicles that are statistically more likely to be stolen. Driving one of these will cause your insurance costs to climb.
If you have an accident where you were declared "at fault" your car insurance rates will climb. This is because your insurance company will have had to pay expenses relating to the accident to the other driver or drivers. As well, proof that you are an aggressive driver or one who is likely to have an accident can also cause your insurance rates to climb. If you get speeding tickets or you are charged with traffic violations you may find that your insurance will go up.
It seems unfair that many of the things that can affect your rates are beyond your control. However, by choosing a car that is less likely to be stolen and driving in a responsible manner, you may find that your rates continue to be affordable.
by: Selena Hummer
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