| Factors That Determine Eligibility |
There are several “risk”factors
that are taken into account by insurance companies when deciding
what
your premiums for auto insurance will be. Underwriters are
people who assess “risk” for insurance companies using formulas — the result of this formula determines your premium. Let's
take a look at some of the factors that determine eligibility
and risk:
|
| Age and gender of driver |
| Drivers 25 years old and under are statistically at a higher risk for a collision than people over the age of 25, while drivers between the ages of 50 and 65 tend to have the safest driving records. Women are typically safer drivers then men. However, for the most part if you are young or a teenager, your costs are going to be much higher. In addition, married people tend to have lower insurance premiums than single people. |
| Location of the Vehicle |
| It makes a difference where you live. If you live in an area that has high-traffic volume, you will spend more, low-traffic volume dwellers will pay less. This is due to a high incidents of accidents in congested areas. In addition, neighborhoods with a higher crime (think theft and vandalism) will also impact the cost of insurance in a negative way. |
| Driving record/Previous claims filed |
| How is your previous driving record? If you have had driving tickets (for speeding, drinking while intoxicated, etc) or accidents in the past, you are at a higher risk for future accidents, hence your premium will be higher. However, it is important to note that most insurance companies allow you to redeem yourself over time, and eventually, if your record improves, your premiums will go down.Your claims history is also taken into account —the more claims you have made in the past, the higher your premiums will be. |
| Vehicle Type |
| If you drive an inexpensive car, your premium will be lower, while a trendy, decked out SUV will mean a higher ticket insurance premium. |
| Credit Score |
| Having no credit rating or low credit rating can illustrate to an insurance company that you are a higher risk for collisions and claims. Some insurance companies take into account your credit rating, however, some do not. Statistically, people with no credit rating or low credit rating are at a higher risk for collisions and claims on their insurance. |
| Occupation |
| The more you’re in you vehicle, the greater a risk you are to an insurance company, because the more your on the road, the greater risk of an accident. For example, if you are in cales and are constantly driving to and from appointments, your premiums are going too be more than someone with a desk job. |
| Other factors that could determine eligibility include: |
| 1. Your level of education |
| 2. The distance you drive to work each day |
| 3. Age and mileage of vehicle |
| 4. How many years of driving experience you have |
| 5. Using the vehicle for business use |
| 6. The limits on your coverage |
| 7. The deductibles on your coverage |
| 8. Theft protection equipment |
| 9. Air bags, anti-lock break systems an other safety devices on your vehicle. |
| 10. Previous claims history. |
| All of these factors can either positively or negatively impact your insurance premiums and there is a lot you can do to lower your premiums. |
Call a Corrigan Insurance Agent today to discuss your eligibility and find the best insurance policy for you and your family. |
