3 Factors That Go Into Your Auto Insurance Quote
Auto insurance quotes are an excellent way to estimate how much you are going to have to pay in order to get properly insured. However, if the auto insurance company returns a quote that you think is far too high, you may be tempted to argue with the company. Before you argue, take a look at these three factors. There might be outside forces at play that have caused your auto insurance to be higher than you anticipated.
1. Lots of Uninsured Drivers in Your Area
If you live in a city that has a very high unemployment rate or a high poverty level, then you will probably have to pay more in car insurance. This is because some people may choose to forgo car insurance in order to pay for other necessities. For example, many people estimate that 60% of all drivers in Detroit do not have car insurance and, as a result, the insurance rates in Detroit are of the highest in the country. If you are in an accident and the other driver does not have insurance, you will have to rely on your own insurance company to pay for your medical bills. This means that insurance companies have to charge higher rates in cities that have a lot of uninsured drivers in your area in order to be profitable.
2. You've Committed Some Moving Violations
Another factor that will drive up the cost of your auto insurance is if you have had any moving violations within the past 8 years. A moving violation is anything from a speeding ticket to an accident that you caused. These tickets show an insurance company that you are a more reckless driver than other people and may cause them to have to pay out. To reduce this problem, you can talk to your insurance company about possibly taking an online driving course to reduce your monthly payments.
3. You're Young
Even if you're no longer a teenager, insurance companies may still consider you to be a risk if you are in your twenties. Insurance companies may assume that someone in their twenties is more at risk to drink and drive if they don't not have a family to take care of. They could also assume that someone in their twenties might be more likely to make poor decisions.Even if you are a safe driver, your youth might count against you. Talk to your insurance company and ask them to weigh your driving record (if it is good) more heavily than your age.
For more information on what will influence your auto insurance quote, contact an insurance company.