What Raises and Lowers Your Car Insurance?

If you have been talking to your friends about car insurance, you must have realized that they don’t pay the same amount — some pay higher and others lower.

If this is your first time dealing with car insurance, you must be wondering why some people pay more and others less, right? Well, there are plenty of factors that determine the price of insurance. These factors include:

The nature of your car

As a rule of thumb, the safer the car you are driving, the less car insurance you will pay, as you will have fewer chances of getting into an accident and you or your passengers getting injured.

A car with plenty of safety features, such as automatic seat belts, airbags, and traction control, will attract a lower insurance rate.

This means you should buy a car with as many safety features as possible to pay less for your insurance. The vehicle might be expensive, but it will save you money on insurance. You also feel safe driving it.

The size of your car also affects the amount of money you will pay for insurance. You might think a larger car will attract a higher rate, but this isn’t the case. Larger cars are, on average, safer than smaller cars, so they attract lower premiums.

While this is the case, note that cars with bigger engines relative to body size are high risk as they have too much power, which increases their chances of getting into an accident. Due to this, they attract higher insurance rates.

This means you will spend more to insure a sports car with a V8 engine than a small car with a V4 engine.

Get a large car to save money on your insurance.

The age of the car will also impact your insurance. An older car is more likely to be “totaled” in the event of an accident.

A newer car attracts a higher collision coverage rate as it’s less likely to be considered totaled. The high collision coverage rate translates to a higher insurance premium.

If you have an older car, opt out of the collision coverage and save money by buying a replacement vehicle in the event you get into an accident.

To avoid making the wrong move, work with your insurance agent and find the sweet spot that will protect your car and, at the same time, protect you from spending an arm and a leg on insurance.

Thieves are known to prefer certain cars to others. Over the years, thieves have been found to prefer Honda accords, Toyota Camrys, Toyota Corollas, Nissan Altimas, and so on.

If your car model is on the list of the 10 most stolen cars, you will most likely pay a higher rate. You can lower your rate by installing car alarms and anti-theft devices.

You

Your gender, marital status, age, where you live, and your credit score will influence your car insurance rate.

If you are a young man, you stand to get a higher rate as, on average, young men are more aggressive, so they tend to get into accidents more often than younger females.

At the same time, older women attract higher premiums, as they have been shown to get involved in minor accidents more than older men.

There is nothing much you can do about your age and gender, but you can shop around and find a moderately priced insurance company.

Married people have been shown to get fewer accidents than their single counterparts. This means that you can lower your premiums by getting married.

While this is the case, you should note that the rate at which the premiums lower depends on your driving history. If you have been driving for a long time and have a clean driving record without getting involved in an accident, getting married can decrease your rates by up to a half.

Your credit score also affects your insurance rate. Different companies calculate their premiums differently, but a lower credit score attracts a high insurance premium on average.

Since accidents happen close to home, where you live significantly affects your insurance premium. Do you live in a densely populated area with plenty of cars? You are at more risk of getting into an accident, your car getting stolen, or hitting other vehicles. As you can guess, you will pay a higher premium.

Different areas charge different fees for car repair, and if you live in a place where the repair fees are high, you most likely will pay a high premium.

Finally, your insurance company can use what you do for a living to determine how much you should pay for your premium.

If you are a delivery driver or journalist, you are on the road more often, which means you are more likely to be involved in an accident.

If you are an airline pilot, you only drive between the airport and home, meaning that you don’t spend a lot of time on the road, reducing the chances of an accident.

Some professionals, such as nuns, paramedics, police officers, and insurance underwriters, have been shown to be more cautious on the road than the average driver and often attract lower rates.

Your driving habits

As mentioned above, your career is directly linked to how often you drive, so if you are a salesperson or a delivery person, you are on the road more often, meaning you are more likely to get involved in an accident.

Some insurance companies will also pay close attention to the roads that you often use, and if they are known to be dangerous, you pay more and vice versa.

If you have received tickets, been involved in an accident, or made a previous insurance claim, the company might deem you as likely to make a similar claim so that they will charge you more than someone without a blemish on their record.

Parting shot

These are some of the factors that affect how high or low you pay for your car insurance. So, whether you are looking for car insurance in Thailand or anywhere else, you should be aware of these factors and make the necessary adjustments to attract lower premiums.