Top 5 Factors That Will Increase Your Insurance Rates

Insurance Rates

There isn’t much in life that is more confusing or more expensive than insurance. Buying a car is one of our major investments, so, naturally, we’re all eager to protect that investment by purchasing car insurance. Well, we are eager, anyway, until we go online and start sifting through car insurance quotes.

Because insurance companies are founded on statistics, virtually every aspect of your life will somehow fit into their charts to determine whether or not you will be a ‘high risk driver’. They take into account your marital status, your prior history, what claims you’ve filed, if you happen to have a teenager learning how to drive—even your occupation comes into play.

Generally speaking, here is a quick summary of the top concerns an insurance company has when offering your insurance:

  1. Driving record—Every time you have a traffic violation, it is recorded in everlasting stone as far as insurance companies are concerned. The more often you get a ticket for everything from speeding to parking, the higher your premiums will pop. So, slow down, use your blinkers, and watch the signs.

  2. Age—Statistically speaking, the younger you are, the higher your insurance premium. Let’s be honest–insurance companies aren’t going to be thrilled when you add your joy-riding seventeen year old son to your insurance plan.

  3. Occupation—If you are a pilot, an artist, a scientist, or a tech nerd, you’ll be pleased to hear that you are considered low-risk in the insurance world. Research found that these occupations are generally held by people that are detailed oriented and meticulous–good qualities in a driver. On the other hand, if you are a doctor, attorney, lawyer, social worker, or a business executive, you are, I’m afraid, considered high risk. This stems largely from the fact that people with these careers tend to work long hours and are overtired and, consequently, more volatile on the roads.

  4. Location—People who live in rural areas encounter less traffic. This means less risky. For those of us who live in urban areas, its a general rule that the bigger the city, the more you’ll pay. Consider it a part of your average cost of living!

  5. Your Car—Perhaps you’re in the market for a new car. When you are budgeting, be sure to remember that the newer the car, the higher your insurance rate will be. Newer cars have a higher value, and thus cost more to repair or replace. In addition, a newer car is more likely to be stolen than a used car. Even if your pretty new car is securely locked down, and the used car in the parking space adjacent has it’s windows rolled halfway up and keys on the seat, a car thief is still more interested in your car. Promise.

Sadly, there are even more factors to consider, such as your marital status, your credit score, gaps in coverage, driving points. All these have an effect on how much you’ll be shelling out each month.

How are you supposed to wade through this murky insurance business, and come out on the other side feeling sure that you got a fair insurance quote?

Well, throwing modesty to the winds, Rate Digest is the invaluable tool that will reassure you that you haven’t been ‘had’. We sift through the murk for you, in-taking your information, and pushing out only insurance options that are trustworthy and fair. We want to be for you what people enjoyed years ago–that reliable agent that will sit down with you this afternoon, take time to work with you and get to know you, and use hard-won knowledge to present you with your best option.

Go to our homepage and put in your area code. From here, we’ll create a spreadsheet for you to compare all of your possible insurance rates.

(Tip: Don’t forget to double check your current insurance rate and policy to be sure that you’re improving your policy in coverage and monetarily!)