How Are Car Insurance Premiums Calculated?
The prospect of buying a new car can be as exciting as it can be daunting. Depending on your budget, and with the entry-level car market currently on the up and up, the possibilities could be vast. We’re guessing that at least one point in your life you started car shopping and forgot to account for the insurance. We all want to be able to afford that sweet Subaru WRX or that Audi S4, but have you seen what it costs to insure one of those bad boys? Fortunately, the Bachmann-Zeitlin Insurance Agency offers comprehensive insurance options at an affordable price for car buyers of all kinds.
Knowledge is Power
We thought it would benefit our readers and our prospective clients to detail common criteria evaluated by insurance agencies when you apply for auto insurance. Of course, insurance premiums change from person to person, but the following list should provide some generally useful information if you are stepping into the car buying (and insurance buying) world.
Influencing Factors of Your Premium
In addition to the coverage options you choose, including limits and deductibles, certain elements outweigh others when it comes time to calculate your rate. In general, these major categories tend to influence your auto insurance premium the most:
- Your Driving Record
- Insurers do their best to evaluate the likelihood of an accident based on previous driving incidents. The unwritten rule: the cleaner your driving record, the lower your premium.
- Age
- Directly relates to driving experience in the eyes of insurers. The more experience you have behind the wheel, the less likely you are to cause an accident.
- Gender
- Statistics say that men are more likely to be involved in an accident than females. Especially younger men.
- Marital Status
- Interestingly, married drivers are less likely to crash than their single counterparts, making them cheaper to insure.
- Where You Live
- If you live in a metropolitan area that’s packed with traffic and has a high theft rate, your premium is likely higher than your typical suburbanite.
- Make and Model of Your Car
- New models with high crash test safety ratings will reward you with lower insurance rates than a driver who opted for a flashier car that performed poorly in the same tests.
- How You Use the Car
- Are you more of a Sunday driver, or a rat racer? How much you intend to drive the car will influence your rates.
- Prior Insurance History
- Drivers with a gapless insurance history are also statistically found to be less likely to get into a car accident.
Choose Your Insurer and Your Vehicle Wisely
We’ve all heard of the 20-something-year-old-guy who went out and put a downpayment on a flashy new sports car and then got hit with a $200 a month insurance premium. Don’t be that guy!
Bachmann-Zeitlin is your best option for auto insurance in Montgomery County, PA and a leading provider of property insurance in Bucks County, PA. Contact Bachmann-Zeitlin today for more information on how we can help you sign off on that sweet new ride you’ve been eyeing up, while also staying within your budget.