7 things that effect Auto Insurance rates, and why you ask yourself “why do I pay so much for car insurance”.
I have been driving around for over 22 years in 3 states and I still pay over $2000.00 a year on car insurance. So I know what I am talking about. I think the number one reason is credit…but they say it isn’t. I hate it when Insurance Agencies ...or apartment rental companies for that matter…state they don’t base yearly premiums or down payments on credit ratings.
Yeah right...I have to call shenanigans on that! Of course they will always say no, no…of course we don’t do blah-blah, but how do you actually know. I haven’t used a credit card or anything that relates to credit in over 17 years, I pay cash for anything I want, it may take longer but it stops me from impulse buys and when I do save up for a car or TV or whatever it is I want to buy it does take away most of the cash I have saved for 6 months or so…but once its mine…its mine and nobody can take it away from me.
Alright back to car insurance, do you understand what they use to determine your car insurance rate?
- Driving history – Well this one is easy to understand no car accidents + no speeding tickets = good driving record.
- How long you have had a car insurance policy and, how long have you been with an insurance company – This one is hard for me to understand…if you work for a company that lets you use a commercial vehicle for personal as well as business, you are effectively under the companies policy. I worked for a company for 4 years that let me use their vehicle for everyday use…so I didn’t need to spend money on insuring my own car. To the insurance companies I didn’t have car insurance for 4 years, and even though I didn’t get into a car accident, or get a single speeding ticket I am classified as a high risk driver.
- Credit history- I think I covered the bases here let’s not talk about it anymore.
- Do you own, lease or pay a bank note on your car? - This one is easy to understand. If you own your car, you can choose what you want covered; usually people who own their cars pick the state minimums. Leases and bank owned cars have to have full coverage to protect the banking company’s interests. You should seriously consider getting coverage to cover the loan as well as the car. Insurance companies usually base replacement and repair costs on blue book value. NOT WHAT YOU OWE!
- Location - Where you live…where will the car be parked? On the street, a garage…if you live in a high risk area, I guess it won’t matter. I say they think if you live in a bad neighborhood…you are a high risk driver.
- Marital status - male/female and age – I hate these it’s…just…SO WRONG!!! On so many levels I don’t even want to get into it….Are these issues even constitutional?
- And last but not least…options and deductibles, Full coverage, minimum coverage, theft collision…all these things will impact your rates. So think long about what you need and speak to an independent insurance agency, they will always find you a better deal than a dedicated agency.
Well these are my opinions in my long years of driving and, not provable in any court of law…so don’t take my words for it. Look it up yourself.