Everyone who has a vehicle understands that auto insurance is an unfortunate necessity. Insurance company commercials are full of claims that they have the best rates or ways for you to lower your rates. This can lead to questions on how your insurance rate is calculated. The vehicle you select is only a small part in that calculation. Here are the other factors that an insurance company considers.

What Coverage You Want

When you talk to an insurance agent, you will be asked what deductibles you are looking for and how much coverage you want. There is a basic coverage required by each state, and some auto loans will require additional insurance. Outside of that, you will want to consider whether you would rather pay more each month or if you would like to pay a higher deductible if you are involved in an accident.

Amount of Driving

Another factor that your insurance agent will look at is how much your vehicle will be on the road. The more it is driven, the greater the chance of it being involved in an accident. This will be true regardless of how good of a driver you are, because not everyone else on the road is a safe driver or fully insured.

Where You Live

Certain areas are more prone to vandalism. If you live in a highly populated area, your car insurance rate will be higher than it is for someone who lives in an area with few people. Your insurance agent will consider vandalism, accidents, theft, and any other possible causes for insurance claims and how likely they are to occur. This will include roadside assistance as an additional cost, especially if you are in an area where tires are likely to get punctured.

The Driver

One of the biggest factors that insurance agents consider is actually the driver. They will look at your credit history and your past driving record. If you have been free from accidents for an extended period of time, you will be rewarded with a discount. Insurance agents also look at statistics, such as that single, young males are more likely to have accidents. However, they often offer discounts for students who maintain good grades or take additional driving classes.

While the vehicle you choose does go into consideration for your insurance rates, you can see that there are several other factors. There are many discounts possible as well, so make sure you talk with an insurance agent, like one from Northeast Underwriters, to find out what you qualify for.

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