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3 Types Of Drivers That Pay Less For Insurance Coverage
September 6th, 2010
Everyone wants to pay less for insurance, and some people do. Car insurance companies give discounts to certain types of drivers, like drivers with good credit get good rates. Various reasons are given by car insurance companies for using credit scoring to determine premiums. One reason is that someone with a good credit score is perceived to be a responsible individual. Other companies point to statistics that show that a driver with a good credit score is less likely to file a claim and is, therefore, a lower risk. The logic is that a person that is a lower risk to the insurer should pay less for insurance. Some companies don't insure those with a low credit score. But most companies have a tiered system so that those with a credit score in a certain range are put into a category that factor into the rates that they will pay.
Good drivers pay less for their car insurance. Car insurance companies give the best rates to those who have shown that they are safe drivers. If a driver has not had a ticket or accident, then the insurer assumes that he is not speeding or driving recklessly. That makes him a good risk, and he is the kind of customer that the insurance company wants to attract by giving him a better rate. With a young inexperienced driver, the company assumes that the opposite is true. If a driver doesn't have enough time on the road, and particularly if he has any tickets or accidents, then he is considered a high risk. If the insurance company sees a driver as high risk, then the rates will be higher.
Drivers who drive certain models of cars pay less. Comprehensive car insurance covers property damage to your car. If you drive an older or less expensive car, then of course the insurer has less risk, and you will pay less for insurance. Some models of cars are more expensive to repair and can result in a higher car insurance rate. Driving a car that is not a sports car and doesn't have a powerful engine can mean lower premiums. Another factor is that some cars get stolen more often. A driver with a car that is on the list of desirable vehicles for thieves may pay a higher premium.
If you want to be one of the drivers who pays less for car insurance, then check out the insurance rates for the car you are driving and any car that you are considering buying, keep up with your credit score and keep tabs on your driving record. All of these factors contribute to the car insurance premium that you will pay.
