It’s all about location. You can bet that those who live in places with a higher cost of living in general will probably see higher insurance rates. This is because those people would have higher payouts since a higher cost of living means higher prices for car repair. Location also has a lot to do with the likelihood of vandalism on your car or the chance that a natural disaster will cause some type of damage. If you live in a more urban area, your rates might be higher for this reason.
It is kind of an unfair fact that poor credit ratings lead to higher car insurance premiums but it is the truth. People with bad credit often have other types of financial issues so having higher car insurance premiums doesn’t help their cause. However, actuaries must have found a correlation between both low credit and getting into accidents and low credit scores and non-payment of car insurance plans, which is how this all developed.
Your car’s information will have a huge bearing on your car insurance rates. What type of car you have, the year, make and model, and how much it costs will definitely affect your car insurance premiums. If you want to have lower premiums then it would behoove you to get a car that is pretty cheap! Otherwise you may be stuck with an expensive car and high car insurance rates.
Your Driving Record
A driving record may be the most important factor in your car insurance search. If you have a poor driving record you may have trouble getting any car insurance at all! So, make sure to keep your eyes on the road and take any classes recommended by your insurance company to get a lower rate. If you have a bad record you face high insurance premiums and you may even have to get a special type of insurance that is just for high risk drivers.