Getting car insurance is an all-important backup in the event of any incident on the road. However, auto insurance policies are not one-size-fits-all. There are several factors that insurance companies take into account at each coverage level that will end up impacting a driver's monthly premium. Here are just a few things that insurance providers take a look at, to let you understand their impact on your car insurance quotes.
1. Your Personal Life
The truth is something as simple as your age can have an impact on your insurance rates. Let's say that you're looking into a Root Insurance quote—you'll be asked about your age and the ages of the other drivers you seek to protect on your car insurance plan. Younger people are considered high-risk drivers for insurance providers because of their inexperience on the road, and the same goes for older drivers whose faculties are not as sharp later in life. Marital status and gender can even have an impact on costs.
Where you live can also impact how much you're spending for coverage, like your address in the United States. A driver in Louisiana will have an inexpensive premium rate compared to a driver in New York. This is due to certain legal requirements of auto insurance coverage. Even your spending habits are monitored by a car insurance company, which will look into your credit score to help determine rates.
2. Your Driving Record
Perhaps the greatest piece of information referenced in the vehicle insurance industry is one's driving record. A safe driver is often rewarded by insurance companies with discounts for avoiding claims placed under their current plan. A bad driver may find themselves paying higher premiums on their base rates that could adjust over time with a cleaner record that avoids any speeding violations. Driving behavior has an immediate impact, and it's monitored over time through any liability insurance to get an understanding of an insured party's quality of life decisions.
If a driver is arrested or convicted of driving under the influence, their rates can be almost doubled by a car insurance provider. Some insurance companies may take into account medical events that take place behind the wheel. It's important to take chronic disease management into account, as certain illnesses, like epilepsy, could require consultation with a health professional to make sure you're capable of getting behind the wheel. Primary care providers and specialists for that chronic disease may have to sign off to allow a risky driver to be considered safe behind the wheel. If your driving history doesn't have a claim stemming from a medical episode, you may want to evaluate your driving habits and how that may impact premiums and deductibles.
3. Your Vehicle
Believe it or not, the type of car you drive can impact how much you may for car insurance. Insurers will assess a new car for its safety features, trim level, and in some cases, even the color to determine the cost of car insurance coverage. Whether you own, finance, or lease can also have an impact on your auto insurance rate.
Of course, the level of coverage you purchase also impacts the quote process. If you look for comprehensive coverage that comes with perks like roadside assistance, you may not have the low rate you would get for lesser protection. The good news is that safe driving over time can result in discounts on rates. If you have property damage coverage that protects you and anybody else involved in a car accident, you can increase coverage with a provision that allows for a rental car. While you will have higher rates if you are found at fault, this could be a good fit if you need to get back on the road right away.