Different insurers offer different premium rates on car insurance policy but this is usually because of certain factors considered. There are several factors that could affect the premium rate of your car insurance policy. This could either make the premium increase or decrease. These factors include:
The younger the driver and level of driving experience, the higher the premium rate would be. This is because the insurance company has evaluated the risks of having a young, inexperienced driver behind the wheel when in comparison to an older, more experienced driver.
This can be described as the amount of money you are willing to pay on your own in case of an accident. The lower the deductible, the higher the premium rate, the same applies when you raise or increase your deductible.
This too have a part to play in how much your premium will be. Men usually have a higher premium rate than women.
If you live in a high risk area, you would pay more in premium than someone living in a secured community. This is because if you live in a high-crime area, your car is at risk of theft or damage.
Type of car
The more expensive your car, the more it would cost for repairs or replacement. For this reason, you should expect higher premium rates. For example, if you drive a sport car, you would have a higher premium rate than someone that drives a sedan – assuming we take only this factor as the sole determinant.
There are still other factors that play an important role in determining your premium rate. These include driving habit, safety devices, credit score, claims, theft deterrent systems, and multiple policies.