6 factors affecting your auto insurance premium

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6 factors affecting your auto insurance premium
Your gender, driving history, age, occupation, civil status, and car all play a factor whether your premium would go up or down

Whether it is a new car or not, it is important that you have it covered.

There are key factors though when determining the amount to pay for the monthly premium of your auto insurance. The higher your risk score, the greater financial loss is at stake in the insurance company.

Here are the 6 common factors about you that will affect your auto insurance rates:

Gender

Men are higher risk than women. In the first place, there are fewer women drivers and they are less likely to drive than the male population. Thus, women tend to get into fewer and less serious accidents compared to men. They are also less prone to violations like speeding and driving under the influence of alcohol and drugs. Women are also more likely to purchase cars that are more costly to insure. When the insurance company calculates the risk, there is a less likelihood that women will use their car insurance, thus cheaper premium.

So if you are male, you have to face that you will most probably pay for a higher premium than your female counterpart, so compare all the rates that car insurances will provide..

Driving history

Always remember that a clean driving record will go a long way to get a cheaper car insurance rate. You will pay for a lower premium than a female driver with a poor driving history if yours is good. Since insurers assess your risk, your driving history will tell a lot about you – judgment, records, and driving habits. It really pays to obey traffic rules.

Age

Young people between 18 and 25 have some of the highest insurance rates, and young males pay much more than young females. Drivers 26 and above will pay more or less the same rates for the next 40 years until they reach “senior citizen” status. Many seniors pay higher rates than middle-aged adults, since this group tends to have more accidents.

Occupation

There are certain careers that are statistically associated with higher risk such as doctors, lawyers, real estate brokers, business owners, architects, and sales people. Why? Because these jobs involve higher stress levels compared to other professions and requires more travel and driving time throughout the day. Other jobs are considered stable and require a very detail-oriented personality type so they are associated with lower risks of accidents.

But of course, not all in “high risk” occupation are high risk drivers, and not all in “low risk” part have perfect driving record. We are talking about the average risk that may add (or deduct) to your risk profile.

Marital status

Someone who is married is less likely to be in a vehicular accident than those who are single. According to statistics, drivers who are not yet married have twice the risk of accident than drivers who are married. One of the factors influencing this could be because married people have more responsibilities compared to the single ones that is why they are perceived to be more careful on the road.

Your car

Some cars cost more to insure than others. Cars with high quality safety and how well it protects you will cost you less on premiums. If your car, however, could cause damage on you and another car, you will be charged for more. Also, you will pay a higher premium if you use your car all the time – for work, or drive it to long distances. Your mileage will determine if you only drive it for pleasure.

The logic is simple: if you think you are less prone on using the benefits of your car insurance, you will pay less; otherwise, higher premiums.

Do you think you are going to pay more for your auto insurance? – Rappler.com

 

 

 

MoneyMax.ph is an online platform for comparing financial and telecom products and services. It aims to give the power of smart purchase decisions back to Filipino consumers by providing everything they need to become financially savvy.

 

 

 

Certificate of auto insurance image from Shutterstock

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