People often wonder what influences their car insurance rates. How come they have rates that are significantly different from a neighbor, friend or relative? Here are some key factors that influence car insurance rates.
Make and Model of Your Car
It goes without saying that the make and model of your vehicle will influence your car insurance rates. Many cars are equipped with safety features that reduce the cost of insurance. Other cars are known to require more expensive repairs, therefore increasing insurance. Insurance rates for a Lamborghini will be much different than rates for a Saturn.
Where You Live
Each state has different minimum car insurance requirements so the minimum amount possible to pay depends on the state regulations. States that require you cover more situations will have a higher insurance rate than those with fewer requirements. For example, Michigan requires lifetime personal injury protection benefits if someone is injured severely in an accident and one million dollars' worth of property protection insurance. Both of these items significantly drive up the cost of car insurance in Michigan, making it one of the most expensive states to drive in.
Insurance is also based on the ZIP code in which you live. Certain areas have a higher amount of claims and a higher severity of claims, therefore increasing insurance rates. Cities tend to have a higher amount of accidents, so urban dwellers often find they pay more to insure their car than those that live rurally.
Personal Driving Situation
Factors such as your commute length and your driving history will have an impact on your insurance rates. Those with a history of accidents or speeding tickets will pay a higher premium. In addition, a long commute makes accidents more likely and can drive up your insurance rates.
Obviously some of these factors are out of your control. However, you can consider purchasing a safer vehicle next time you are in the market for a car. You can also drive within the laws and avoid accidents to keep your rates at a minimum. Change the things you are able to change to reduce the cost of insurance as much as possible. In addition, different insurance companies have different policies, so hiring an independent insurance agent to help you select the lowest cost insurance for your personal set of circumstances can save you significant money.
Get a quote today. CallBuschbach Insurance Agencyat (708) 423-2350 for more information on Oak Lawn auto insurance.