Factors that Affect Your Auto Insurance Rates

When you’re out on the road, make sure you’re driving responsibly and safely! Not only does it keep you safe but it also helps you save on out-of-pocket expenses. Your ability to control the vehicle and mitigate any risks of accidents also affects your chances of landing a feasible insurance policy.

That’s not it.

Your auto insurance policy depends on a number of factors. Here are some of them:

Vehicle-related factors

a.      Safety features

The kind of car that you drive affects the insurance premiums you’ll get. The higher the number of safety features, the lower the rate will be. Such features may include airbags, seat belts, traction control, and anti-lock brakes. This is because these features make your car safer and reduce the damages sustained by the car in times of an accident. Most insurers also look at the car’s safety ratings for the purpose.

b.      Size of the car

The likelihood of an accident also depends on the size and mass of your car. According to research, accident involvement increases as the mass of a car increases. The rate of accident for a 900 kg car is at least 28% lower than that for an 1800 kg car. This means that as car size increases, your insurance premiums may also go up. A possible explanation for this is that larger cars can reach higher speeds and are likelier to meet speed accidents. Also, the greater the number of passengers that can fit in, the greater the chance of injuries.

c.       Technology

If your car is modern and loaded with new technology, the insurance premiums will still be high. Expensive cars are not only more susceptible to theft but they’re also expensive to repair.

Demographics

a.      Age

Accident risk is also largely defined by a driver’s age. According to research, the chances of crashes are higher among drivers between the ages of 21 and 29. The likelihood reduces as they age.

Similarly, the risk of fatal injuries is higher among drivers above the age of 70 because of their reduced muscular coordination and higher fragility. If you belong to either of these age groups, your auto insurance premiums could be higher than usual.

b.      Neighborhood

If your neighborhood is densely populated and the roads are crowded, the chances of accidents are higher. The insurer might also look at the details of your area’s crime rates to see if car thefts are common. Another reason why your location matters is that repair rates vary from one area to another.

If you’re based in Indian Orchard, Western Mass Auto Insurance can draft a low-cost auto insurance policy and auto insurance agents Indian Orchard for you. Take a look at our auto insurance coverage services here.