Car Insurance Prices: Top 5 Things You Didn’t Know
When it comes to car insurance prices, there are a lot of things that can make the monthly payment fluctuate. Sometimes it just depends on the company you get your insurance from, while other times it has to do with a how much you pay.
There are things we all know, like how the type of vehicle you drive can affect insurance costs. However, there are five main things that can change the price of your car insurance that you probably did not know about!
Your age actually has a huge impact on how much you pay for car insurance. Young drivers can make a lot of mistakes behind the wheel. And while it may not seem fair, if you are an inexperienced driver, your age can make your monthly bill skyrocket!
For a sixteen year old driver in the United States, a six month premium for car insurance can be between $2,000 and $5,000. This also depends on the company you choose to insure your vehicle. However, for an older driver it is a lot less. A six month premium for a fifty year old in the United States can be as low as $450 to $1,000! That is a huge difference.
Getting behind the wheel of a car with insurance means you may have to pay for your age. Keep in mind that most older drivers have been on the road for a long time, while younger drivers do not have a lot of experience.
Driving History and Insurance History
Your driving history and your insurance claims history can also impact your insurance payments. Sure you can learn how to negotiate a better price for insurance once that speeding ticket is off your record, but some driving records can cost you!
If you do not know exactly what is on your driving record, it may be time to get a copy. Here are just a few things you can find on your driving history at your local DMV:
- Speeding tickets
- Traffic violations
- Accident reports
- Vehicle registrations
- License suspensions
If you have had some of these citations in the last six months, you may notice your insurance rates going up. While some things are taken off your record after a few months (speeding tickets), more serious violations like a DUI will be on your record permanently. All in all, if your driving record is clean, then you may not see any spikes in pricing. You might actually get a good driving discount!
Previously filed insurance claims can also hike up your costs. If you have been in an accident, or had an ongoing issue with your car, then your insurance might consider you a high risk investment and raise your monthly premiums.
Credit Scores Influence Car Insurance Prices
You may not know this, but your credit score can make a huge difference in the cost of your insurance. If you have a good credit score, you are more likely to pay your fees on time, and will get a better price. However, if you have a low credit score, you may be a high-risk for your insurance company financially. This means you may have higher car insurance prices.
In order to maintain a lower payment, you may have to get your credit score a little higher. All things considered, it might help you outside of car insurance issues as well!
Surprisingly Enough, Your Gender
Gender has a huge roll in the cost of your insurance. Teenage male drivers tend to pay more than female teenage drivers on average. This can be as much as a $500 to $800 difference annually.
However, once drivers reach the age of 25, there is less of a pay gap. Talk to your insurance company to see if you can get the gender gap lowered for your teenage driver.
Mileage and Usage
One thing most people don’t think can influence car insurance prices is how much you use your car! The mileage and daily usage can make your monthly payments very expensive. This is because the more you use your car, the higher the chance there could be an accident. And the higher the mileage on your vehicle, the more likely it is to break down or have mechanical issues.
The Car Insurance Prices for Your Car!
Now that you know the top five things you may not know can influence your car insurance prices, you can start to be proactive. Get on the phone with your provider immediately to negotiate, and possibly bring down your monthly payments. Knowing what affects your insurance price means you can use these influencers to your advantage!