Car insurance premiums may seem arbitrary, but they are actually the result of complex calculations based on many different factors. Some effects are obvious-- like the make of your vehicle-- while others might surprise you. Consult the following list for a variety of factors that ARC Insurance considers when we quote your personal car insurance premium.
History of accidents: If you’ve had one or more at-fault accidents within the past five to ten years, your insurance premium may be higher than average.
Age: Based on statistics, younger drivers experience a higher risk of automobile accidents. Insurance premiums reflect this, and lower as drivers mature.
Multiple policies: If you are a property owner or you own multiple vehicles, insurance policies can be packaged together to lower premiums.
Vehicle-related: Is your car a hybrid? Do you have anti-theft devices installed in your vehicles? These can reduce your premium. Ensure any new drivers have passed a drivers training course.
Driver background: Lapses in insurance or license suspensions can drastically differ your premium, depending on the severity of the instances.
Who’s driving? Marital status of drivers, how often they drive and how long they have been licensed are all factors that can affect the insurance premiums of your vehicles. Even gender can make a difference: female drivers statistically have fewer accidents!
The basics: What, how, and where you drive are the fundamentals of car insurance. A sports car is insured differently than a mini-van; a daily commuter is insured differently than a Sunday road tripper; a city dweller is insured differently than a snowbird with vacation homes. Consider the make, model and use of your vehicles when judging your insurance premium quote.