Car Insurance Cost Factors

Charles Goodman Group: Professional Insurance Agent in Armonk

A driver may wonder why the cost of their car insurance premiums differ from their fellow motorists. When an insurance company insures a driver, there are a number of factors that they take into consideration. An Armonk insurance agent may help a driver understand how these factors affect their rates and how to lower the cost if possible.

By law, all drivers must have a certain amount of liability coverage. While this can help protect a driver against lawsuits should they cause a car accident, it is recommended that they seek additional coverage in the event that they suffer injuries or that their car sustains damage in a collision. However, the more coverage a person has, the more their insurance policy will cost. On the flip side, a higher deductible may result in a lower premium.

Another major factor that may determine the cost of a person’s policy is their past driving record. If a person has never experienced an accident or a serious traffic violation, it is likely that their premiums will be lower than if they’ve been involved in one or more major accidents. Newer drivers who have no driving history are also likely to have higher premium.

An insurance agent from the Charles Goodman Group of Armonk would be happy to answer any question you have about umbrella insurance or life insurance.

A person’s age and gender may also be taken into consideration when determining the cost of a car insurance policy. Newer drivers are often teenagers or young adults, with their inexperience meaning that they are more likely to become involved in a crash. Once a person reaches the age of 25, the risk of that person being the cause of an accident drops. Additionally, statistics have shown that women of all ages are less likely to be involved in accidents or be charged for drunk driving; as a result, women generally pay less for their insurance policies.

The type of car that a person drives may also affect the cost of their car insurance. Newer cars are more likely to cost more to repair than older vehicles. Along the same lines, luxury vehicles are more likely to cost more to insure as they may require specialized repairs. Additionally, larger vehicles, such as SUVs or vans, have the potential to cause more damage to other vehicles, resulting in a more expensive insurance policy for the driver.

Finally, an insurance provider will also factor the overall use of the car into the cost of the insurance policy. This is because the more a vehicle is used, the more likely the driver is likely to become involved in an accident. The less a driver uses a vehicle, the less the insurance policy may cost.