Car Insurance Articles

What Can Cause Your Motor Car Insurance to Increase?

2009-06-25

There are many misconceptions regarding how car insurance is calculated. Many people do not understand the different variables that can affect their rates. They believe that getting a car insurance quote should be the same price for everyone, but this is simply not the case. That is just a myth.

One of the aspects that can affect a motor car insurance quote is the type of vehicle itself. The year, make, and model can all impact the rate. Some vehicles, for example, are stolen or vandalized more often than others. Some cost more to repair and some are involved in collisions more often than other makes. Some vehicles, such as trucks or SUVs, can be more costly to insure than a four-door family sedan. Vehicles that have been altered or modified will also be charged a higher premium.

Each person is rated individually as well. This is perhaps the most determining factor in calculating motor car insurance premiums. Rates are based on how long a person has been driving. The more experience they have behind the wheel, the better the rates will be. On the other hand, the number of traffic violations or at-fault claims also has a bearing on the premiums. Any suspensions or convictions for impaired or dangerous driving will certainly drive the rates up as well. These factors are all added together to determine what the premium will be. So, in effect, if someone has been driving for twenty years and he or she has racked up several speeding tickets and caused accidents, then his or her rates will shoot sky high, compared to a twenty year driver with absolutely no driving infractions.

So, we have determined that automobile insurance polices can be surcharged, but they can also be discounted. Many insurance companies offer a selection of discounts that can immensely decrease how much a person has to pay for insurance. Some discounts that are offered include a mature driver discount, which credits a person based on age, assuming the person has years of driving experience.

Young drivers, or drivers who have just obtained their license, need not fret as long as they have taken an approved driver training course. When people first receive their licenses, they are rated as having no driving experience, and rightly so, as they are a higher risk while on the road. However, if drivers take training courses, they will be credited with a couple years of experience. This will ultimately lower their insurance premiums.

Simply put, there are several factors that a person must keep in mind when shopping around for motor car insurance quotes.  Stay informed so that you can receive an affordable policy with numerous benefits.