While demographic factors and car-related factors do influence your car insurance rates, your driving record is the most important factor insurers take into account when determining your insurance costs.
There are two things insurers look at when it comes to your driving:
1. Your driving history
Insurance companies want to know as much as possible about your driving history so that they can determine how big of a risk you are. If you’ve been in accidents, if you constantly receive tickets, or if you’ve made any other auto insurance claims, your insurer will increase your rates. And if your driving record is really bad, then some insurance companies will probably refuse to work with you.
The good thing about your driving history is that you can improve it. You don’t have to worry about a few tickets that you got some years back. If you make an effort become a more careful and responsible driver, it will pay off in time.
2. Your driving activity
Do you use your car to commute to work? Do you use it for business reasons? How often do you drive? When do you drive? Insurance companies will ask these questions. And their answers will influence your rate.
People who drive to work, who use their cars for business reasons, who drive often or late at night will have much higher rates than those who usually only take their cars out during the weekend or to go to the grocery store. It’s simple. The more time you spend on the road, the more likely you are to get in an accident.
But, if you don’t use your car that much, you’ll definitely get a good discount.
The bottom line
Nowadays, no matter how much you make, you can’t throw money away. If you’re able to save, then you should do it. And if you have the opportunity to save on auto insurance, you have to take it.