One of the most common questions you may ask as you look over the policy is: How is my premium calculated? Though there is no one set of guidelines to follow because all insurance companies have different requirements, we hope this list will help clarify some of the factors that contribute to your rate.
As a rule of thumb, the more expensive the car, the higher the premium.
The more you drive or commute for long distances, the higher your premium is likely to be.
The big standout here are males under the age of 25, as they are considered a risky and inexperienced demographic. In some cases, married couples may pay less.
Getting car insurance within New York can be a completely different experience depending on the area. Generally, due to a higher likelihood of instances of vandalism, theft and accidents, urban areas produce higher rates than their suburban or rural counterparts.
Credit is often used as a predictability factor for future habits. The same goes for your car insurance. Credit history is used to indicate and assess potential risk.
Insurance companies want to know your history behind the wheel. Those with poor driving records (with tickets, accidents, etc.) tend to experience higher rates than those who have had clean driving records for several years. Companies often look back as far as 5-7 years.
If you have recently had a period where you were uninsured because of a denial, cancellation, or non-renewal, this can affect your rate going forward.
Your deductible is the amount of money you are responsible for before your insurance company will pay out on a claim. The more responsibility you take on, the lower the annual rate.
Depending on the company, there are normally a variety of coverages offered. The more coverage you buy, the higher the final rate.
Join a carpool to work or alternate between driving and public transportation. Lowering usage can lower the premium.
There are discounts offered for safety features on your vehicle; taking advantage of these can lead to cheaper car insurance. Things such as passenger airbags, backup cameras, and blind spot monitoring are all things that can lead to a discount. You may also receive discounts for a good driving record.
Taking an accident prevention course helps prove your commitment to safe driving! You can also “bundle” your auto policy with other types of insurance the company may offer, such as home or life.