A reporter recently asked the Edmunds types of personal information that may affect cost of car insurance. They also wanted to know if people can do something about personal factors that kept their car insurance rates high to address.
They are good questions, and Edmund was glad to help them answer. During the investigation it became clear that when it comes to car insurance, there is hardly anything that is not personal. Here are five all-you-over factors that can affect your car insurance premium:
1) Your driving profile. Factors such as number of miles you drive per year and your ticket and accident history are important elements in setting up your insurance rate. The less you drive, the less risk of an accident and a claim. Safer driving - the significance of a history free of accidents and traffic violations - points to someone less likely to file a claim.
2) The car you drive. Car insurance premiums are based partly on the sticker price of the car, the cost to repair, the overall safety and to take the risk of theft, according to the Insurance Information Institute. The cost of establishing a brand new $ 225,000 2010 Ferrari 458 Italia is a lot more than the repair cost $ 17,000 for a used Nissan Altima. The premium will reflect.
3) Your basic personal information, including your age, occupation and where you live. All of these things factors in the process of setting up your insurance rates because insurers base their premiums on actuarial information about drivers. They look for patterns of claims activity among people like you. A teenager is probably a higher rate than middle-aged drivers have insurance, because statistically, boys have more accidents or 40-year-olds.
Ynur professional role as it affects how much driving you do. Work that many miles on the road as a sales function, hold can affect prices. From the standpoint of the insurer believes that the more miles you drive means more chance of an accident.
Insurance companies also look at where you live. They follow local trends of accidents, car thefts, lawsuits and the cost of the medical card and auto repair, according to the Insurance Information Institute.
4) The coverage you choose. The more coverage you choose and the lower the deductible you set, the more you pay.
5) Your credit score. Some insurance companies use credit scores as a factor in setting rates. This practice is under attack, however, seven states in 2010 with the passage of regulations regarding the use of credit information in insurance. In 2011, several other state lawmakers introduced bills to regulate the practice.
Actuarial studies show that how a person manages his or her financial affairs, is an accurate predictor of the number and size of insurance claims that they file, according to the Insurance Information Institute.
Want your insurance costs, you can not change your age, or easy to change your job or home. But there are some personal changes you can make:
1) Consider pay-as-you-drive insurance. It is a paradox, but the more personal you get, the better your rates might be. Pay-as-you-drive programs offer better rates because they are attuned to the way you personally drive - unlike the people who are similar to you in terms of age or other factors constant.
This means that a teenager who is an excellent driver - not the speed, not driving at night and not many miles away - a better rate than the average teenager, whose actuarial profile pegs him as a higher risk to get on base of the accident history for people of his age.
Pay-as-you-drive plans have different configurations depending on the insurance company and the state. Some require that you have a telematics device that provides information about your current drive (such as speed, braking patterns and mileage) will notify the insurance company to install. Others, such plans permitted in California, just based on the number of miles you drive, not how you drive.
2) Be a quieter, more cautious driver. If you've had fines in the past in order to solve it fast, aggressive driver into a peaceful one. An additional advantage is that you save money on gasoline. Edmunds tests have also shown that a calm driving style you get 35 percent lower fuel consumption.
3) Choose a car with a lower cost of ownership. Edmunds True Cost to Own is a ® (TCO) tool that allows you to size cars as you shop. It takes account of eight components - depreciation, interest on financing, taxation, insurance, fuel, maintenance, repairs and a federal tax credit that may be available - and tells you what your cost would be about five years. It is a way to preview what your insurance premiums could get. Talk with your insurance company when the car shop to get a quote of what your choices affect your insurance. If you wait until the deal is done, you lose a chance to manage your costs.
4) Change your coverage. Do not go for all the bells and whistles in a car insurance. If you are willing to pay a slightly higher deductible, you can wind up saving big on your rates. Ranging from $ 250 for a $ 1,000 deductible can save 25-40 percent on your policy. Aside a portion of these funds for your expenses in the event of a claim to cover.
If you have an older car with comprehensive and collision coverage, you would find that you pay more in insurance than the car is worth. A tip: Take your comprehensive and collision premium and add it on. Multiply by 10. If your car is worth less than that amount, do not buy the coverage. If you are concerned about the fact that left overexposed, consider this: The typical policyholder makes a claim only once every 11 years, and reports a total loss only once every 50 years.
5) Find out which discounts you may qualify. The options available are discounts for low mileage drivers, for seniors and for cars with anti-theft devices and certain safety features. It's a long list - just ask your insurer about any discounts, and go from there.
6) Make your credit. Keep it in good shape by paying bills on time and regularly check that there are no items in your history that is not yours. You can free annual credit report checks here.
Is personal information that is irrelevant? Gender, an expert told us. Insurance companies do not care if you are male or female as long as you a safe driver. And it's a myth that red cars have higher insurance rates than the more sedate sport shades are, according to the Insurance Information Institute. Ultimately, insurance companies care about the probability that a particular driver could eventually making or causing an expensive claim against them. Green is the only color that matters.
They are good questions, and Edmund was glad to help them answer. During the investigation it became clear that when it comes to car insurance, there is hardly anything that is not personal. Here are five all-you-over factors that can affect your car insurance premium:
1) Your driving profile. Factors such as number of miles you drive per year and your ticket and accident history are important elements in setting up your insurance rate. The less you drive, the less risk of an accident and a claim. Safer driving - the significance of a history free of accidents and traffic violations - points to someone less likely to file a claim.
2) The car you drive. Car insurance premiums are based partly on the sticker price of the car, the cost to repair, the overall safety and to take the risk of theft, according to the Insurance Information Institute. The cost of establishing a brand new $ 225,000 2010 Ferrari 458 Italia is a lot more than the repair cost $ 17,000 for a used Nissan Altima. The premium will reflect.
3) Your basic personal information, including your age, occupation and where you live. All of these things factors in the process of setting up your insurance rates because insurers base their premiums on actuarial information about drivers. They look for patterns of claims activity among people like you. A teenager is probably a higher rate than middle-aged drivers have insurance, because statistically, boys have more accidents or 40-year-olds.
Ynur professional role as it affects how much driving you do. Work that many miles on the road as a sales function, hold can affect prices. From the standpoint of the insurer believes that the more miles you drive means more chance of an accident.Insurance companies also look at where you live. They follow local trends of accidents, car thefts, lawsuits and the cost of the medical card and auto repair, according to the Insurance Information Institute.
4) The coverage you choose. The more coverage you choose and the lower the deductible you set, the more you pay.
5) Your credit score. Some insurance companies use credit scores as a factor in setting rates. This practice is under attack, however, seven states in 2010 with the passage of regulations regarding the use of credit information in insurance. In 2011, several other state lawmakers introduced bills to regulate the practice.
Actuarial studies show that how a person manages his or her financial affairs, is an accurate predictor of the number and size of insurance claims that they file, according to the Insurance Information Institute.
Want your insurance costs, you can not change your age, or easy to change your job or home. But there are some personal changes you can make:
1) Consider pay-as-you-drive insurance. It is a paradox, but the more personal you get, the better your rates might be. Pay-as-you-drive programs offer better rates because they are attuned to the way you personally drive - unlike the people who are similar to you in terms of age or other factors constant.
This means that a teenager who is an excellent driver - not the speed, not driving at night and not many miles away - a better rate than the average teenager, whose actuarial profile pegs him as a higher risk to get on base of the accident history for people of his age.
Pay-as-you-drive plans have different configurations depending on the insurance company and the state. Some require that you have a telematics device that provides information about your current drive (such as speed, braking patterns and mileage) will notify the insurance company to install. Others, such plans permitted in California, just based on the number of miles you drive, not how you drive.
2) Be a quieter, more cautious driver. If you've had fines in the past in order to solve it fast, aggressive driver into a peaceful one. An additional advantage is that you save money on gasoline. Edmunds tests have also shown that a calm driving style you get 35 percent lower fuel consumption.
3) Choose a car with a lower cost of ownership. Edmunds True Cost to Own is a ® (TCO) tool that allows you to size cars as you shop. It takes account of eight components - depreciation, interest on financing, taxation, insurance, fuel, maintenance, repairs and a federal tax credit that may be available - and tells you what your cost would be about five years. It is a way to preview what your insurance premiums could get. Talk with your insurance company when the car shop to get a quote of what your choices affect your insurance. If you wait until the deal is done, you lose a chance to manage your costs.
4) Change your coverage. Do not go for all the bells and whistles in a car insurance. If you are willing to pay a slightly higher deductible, you can wind up saving big on your rates. Ranging from $ 250 for a $ 1,000 deductible can save 25-40 percent on your policy. Aside a portion of these funds for your expenses in the event of a claim to cover.
If you have an older car with comprehensive and collision coverage, you would find that you pay more in insurance than the car is worth. A tip: Take your comprehensive and collision premium and add it on. Multiply by 10. If your car is worth less than that amount, do not buy the coverage. If you are concerned about the fact that left overexposed, consider this: The typical policyholder makes a claim only once every 11 years, and reports a total loss only once every 50 years.
5) Find out which discounts you may qualify. The options available are discounts for low mileage drivers, for seniors and for cars with anti-theft devices and certain safety features. It's a long list - just ask your insurer about any discounts, and go from there.
6) Make your credit. Keep it in good shape by paying bills on time and regularly check that there are no items in your history that is not yours. You can free annual credit report checks here.
Is personal information that is irrelevant? Gender, an expert told us. Insurance companies do not care if you are male or female as long as you a safe driver. And it's a myth that red cars have higher insurance rates than the more sedate sport shades are, according to the Insurance Information Institute. Ultimately, insurance companies care about the probability that a particular driver could eventually making or causing an expensive claim against them. Green is the only color that matters.
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