When shopping for car insurance, you will realize the information you are asked about will determine your rate for coverage. Premiums are not just numbers that insurers guess. Premiums are carefully considered, and are comprised of the risk of insuring you and your vehicle. To help you better understand how premiums are made, take a look at just a few things that can impact your car insurance rates.
Where you live and where your car is parked is important to your insurer. Certain neighborhoods will have a higher crime rate than others, where more auto insurance claims are filed because of vandalism or theft. In these areas, premiums will be higher than those policies in neighborhoods where crime rates are low and there are fewer claims.
The type, make, model, age, condition, and safety features of the vehicle will determine what type of rate you receive. The safer your vehicle is, the more affordable your premiums since certain safety features can prevent accidents and minimize damage if an accident does occur.
Believe it or not, but the insurance agency will want to know about your job. If you work in a high-risk industry or drive many miles to get to work, you may face higher premiums than those who work in low-risk industries and have a short commute.