What Influences Car Insurance Rates And Why?

Even if two individuals drive the same vehicle models that also happen to be the same color and year, they may still be likely to receive the different insurance rates. There are actually a few carefully-designed reasons as to why they will not receive the same insurance rates. Car insurance companies look at a variety of things, stopping short of an interview, to figure out what kind of driver they will be providing insurance to. By considering multiple factors, car insurance companies can somewhat determine how much of a risk a customer will be. Insurance companies look to insure less risky drivers, as these drivers are less likely to need to make a claim. Insurance companies will provide a customer with a rate they would like for the customer to pay based on their perceived risk to the company.

Start reading to learn about some of the factors that play into a decision such as this.

Marital Status

A customer's marital status gives some insight as to how much of a risk they might be to the insurance company. Married couples are typically viewed as safer drivers who are less likely to file an insurance claim. If someone who is married does get into an accident, studies have shown married individuals tend to sustain fewer injuries during an accident.

In all states but Massachusetts, married couples can receive a variety of discounts through combining insurance plans or bundling. Combing multiple auto policies, or home and auto, or additional vehicles allows insurance providers to offer cheaper rates to married couples.

Continue reading to learn about the influence of age on insurance.

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StackedMoney Staff