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7 Factors Affecting The Cost Of Car Insurance In America PDF

If you live in the United States, but not in new York, Chicago or Los Angeles, chances are that you move around the city by car. This means that you also pay premiums for car insurance, as residents of all States except new Hampshire are required to have one. But do you know where these figures come from that you are offered to pay?

It should be noted that first of all insurance companies try to insure themselves against the risk of paying money. That's why any two people can go and buy insurance with the same coverage, but they will pay different amounts for it.

There are several factors that affect how much you will pay for insurance. Different insurance companies in America use different formulas, but usually they all take into account the following factors.

1. Driving history.

If you "love" to get into an accident, then prepare to pay more than a good driver. It's usually a lot more. Some companies offer an additional service called "accident forgiveness", the essence of which is that while you are with this firm, your accidents and payments on them will not affect your monthly payment. If you are offered one, take it without hesitation. Usually, the addition of this service will not affect your payment.

2. Demographic data.

Insurance companies rely on statistics, and based on it, people younger than 25 years and older than 65 years have a much higher risk of getting into an accident. Also, according to statistics, men are more likely to get into accidents than women. For married people, the picture looks better and they are less at risk of getting into an accident. But what I don't understand at all is that they consider students adequate and give them a discount if in their grades "B" and above (four and above in our way).

3. Credit history.

It was this point that annoyed me the most the first six years of driving. Roughly speaking, you are punished for not using credit cards, or if you do not know how to conduct finances. So if you came to America recently, or came a long time ago, but not interested in credit history, it's time to learn new information for yourself. This will save you a lot of money afterwards. Another time I will write a detailed post about it.

4. Profession.

In theory, you don't have to tell them where or by whom you work. But apparently, who you work for can negatively affect the size of your insurance premiums. For reasons I don't fully understand, they consider doctors and lawyers to be at a higher risk of having an accident than, for example, teachers. Maybe it's due to stress? Other examples of high and low risk professions can be found at this link.

5. Level of education.

Again, "statistically," people with higher education are at less risk of having an accident. So that apparently me still long will have to pay slightly more than need.

6. Car.

The car you drive can also affect your insurance fees. Apparently, they will depend on how safe your car is and how attractive it is to thieves. The rating from Statefarm can be viewed at this link. Apparently, our new Camry is not listed with insurance companies.

7. How much you drive.

How often and how far you normally travel by car can also affect your insurance. Perhaps this point the most logical, than all previous. The more often and further you move, the higher the chance that you will get into an accident. No insurance company will know exactly how many miles you wind, and I don't know exactly myself, so if the answer to that question is mandatory, I usually say about 12,000 miles a year.

When I got my license at 20 and tried to find an insurance company, the cheapest one for me cost me $200 a month. Two months later, I went to another one and started paying $150. Is worth clarify, that this even not full coverage was, and cover it only the, in that I'll drive in. I would have to rebuild my car with my own money if something happened to it.

I now pay about $105 for full coverage of two cars and three drivers (me, wife and mother). Why do we pay for the mother? Because it's cheaper for her. Otherwise she'd have to pay the same money I paid when I first got my license. Of course there is a risk that if it moves into someone, then our contributions will increase, but we do not think about it and for a year we live exactly like this without any problems (ugh, ugh, ugh).



0 #1 The Cost Of Car Insu 2019-12-07 22:22
7 Factors Affecting The Cost Of Car Insurance In America

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