Most drivers already know how important it is to shop around for the best possible insurance rate, but some are unaware of the factors that may lead them to pay more. It helps to have a basic understanding of insurance. Reputable Insurance Companies in Spring TX profit when they insure those with clean claims histories. When any of the following factors are present, they indicate an increased level of risk and a higher monthly premium.
Buying a New Vehicle
Because new cars are worth more than older models, they cost more to replace. Furthermore, if a new vehicle is leased or financed, the lender will likely require the driver to have full coverage. Trucks, SUVs, and minivans tend to be less expensive to insure than smaller and flashier models.
A Longer Commute
A long weekday commute isn’t just costly in terms of fuel and time, it also boosts a driver’s monthly premium as well. Rush-hour driving carries a greater accident risk, and those who drive for a living will pay for the increased time they spend behind the wheel.
Age and Marital Status
If a person is childless and unmarried, they’re in a riskier category than someone who is married with children. Those who are male and under the age of 26 will pay even more for auto insurance.
A Lapse in Coverage
When a driver drops their insurance as a cost-cutting measure, they are penny-wise and pound-foolish. Lacking auto insurance, even for a short time, will cause a driver’s premiums to increase significantly. Reputable Insurance Companies in Spring TX can usually help drivers save even after a lapse in coverage.
Brushes With the Law
A clean driving record typically results in a lower monthly premium and, conversely, a poor record will raise rates. Insurers use the merit plan system, periodically scanning for violations. After a driver commits a violation and it’s discovered by the insurer, they may pay more for the next several years.
Car insurance rates are typically based on uncontrollable factors such as gender and age. Understanding how various factors affect insurance rates may help drivers shop around for more affordable policies, and it may also lead them to rethink their driving styles. Visit the website for more information or call the Insurance Offices Texas to request a quote.
