Reader’s Question:

I am just wondering how a car insurance company determines how much premiums they are going to charge you?

James

Montgomery AL

The answer depends on the personal and vehicle information you will give to them together with your current driving status.

First off, your personal information which includes your age, gender, marital status and how long have you have been driving affect your car insurance rate. These are the first set of question you are required to answer if ever you need to ask for a quote. Drivers who are females or are married will usually acquire cheaper car insurance rates. Drivers who are first time drivers or are aged 16 to 20 will surely have an expensive quote. Most drivers who have been driving for a long time with minimal or no accident at all can be eligible for a good driver discount or if not, they will be rewarded with a lowered insurance rate.

Second set or group is all about your cars information you are trying to insure. Car information includes its year, make and model. Car insurance companies also ask what will be the primary use of your vehicle and sometimes they even ask if it’s already paid in full or if it’s still being paid through financing. They might also ask how many miles you have driven in a span of one year in order for them to know if they should give you cheaper rates or if they can provide you discounts.

Other factors that can affect your car insurance quote include security and safety features installed in your car. Some examples of these features are car alarms, airbags or anti-lock brakes. These features can greatly lower your premiums to a minimum. Another factor that has an effect on your premium is the place where you park your car overnight. Having it parked in a safe garage can reduce your premiums because there is a lesser chance of your auto being vandalized or there is a lesser chance of it being stolen.