Factors that can affect your car insurance

Here are the top 10 factors affecting your car Insurance:

1. The type of vehicle you drive: Different types of vehicles have different insurance requirements. For example: a truck is 3% cheaper to insure than a sedan, on average. Insurance companies charge different amounts for various types of cars as safer vehicles are less likely to lead to expensive claims and also each variant has a different feature set and overall requirements. However, if the car you drive has built-in-security features, you can avail certain discounts from insurance companies.
   
   
2. State requirements: One of the most important factors affecting your car insurance rates is the state that you reside in. Each state has its own specific law and car insurance requirements. If the state directs its residents to purchase more insurance coverage, the more expensive the policy will cost.
   
   
3. Age: People from different age brackets have to pay different amounts for their car insurance as people with less driving experience i.e younger drivers are more likely to get in an accident as compared to older drivers. This is also the same for senior drivers over the age of 65+.
   
   Both of these groups might cause heavy claims for the insurance companies and hence their premium is priced at a higher rate.
   
   
4. Credit Score: Your credit score is considered to be a very important factor while calculating your insurance premium as having  a bad credit score results in having to pay more than the average premium for your insurance policy.
   
   Insurance companies believe that a person’s credit score and income tend to rise and fall together. A higher credit score ensures that you can afford to pay for minor damages yourself instead of filing a claim as compared to people with a bad credit score who’s claims tend to have higher payouts.
   
   
5. Driving record: Drivers with a clean driving history are considered to be low risk for insurance companies due to their ability to drive safely and are less likely to get into accidents as compared to drivers with a bad driving history who might end up having to pay 40% for their insurance premiums as compared to their counterparts.
   
   
6. Marital Status: There is a minor effect of your marital status on your insurance premiums as data has shown that drivers who are married and share driving duties are more likely to file fewer individual claims.
   
   
7. How much you drive: The reason why insurance companies factor in the amount of miles you drive on your car while deciding your insurance premium is that the more miles you clock in the more exposed you are to mishaps and accidents.
   
   
8. High-risk Violations: Insurance premiums are also affected by traffic violations for which you have been convicted in the past and accidents that you have gotten into. Traffic violations and car accidents can increase the cost of your overall premiums by anywhere from 20% to 200% as compared to what you were initially paying.
   
   
9. Gender: Your gender is another important factor affecting your premium rates as research has found that men around the age of 45 pay an average of 6% less for car insurance than females. Also a male teenage driver is said to pay more than $754 on average for their annual insurance premium as compared to female teen drivers.
   
   
10. Claims History: Insurance companies consider individuals with long claim history to be a big risk. Included in your claims history is any insurance claim you file — and any claim filed against you. If your insurance company has cleared your claim, you can expect your insurance cost to rise.