When you’re looking at your monthly Atlanta car insurance payment, you might wonder how exactly the insurance company came up with that number. Did they just pick a premium out of the air? We get that it may feel that way, but the truth is that there are many factors that affect the cost of car insurance. These factors can be separated into two categories: details about you and details about your car. We’ll explain how insurance companies set car insurance rates.
What factors affect the cost of Atlanta car insurance?
Insurance companies want to know about you when they’re determining your car insurance rates. They’ll want to know where you live, what kind of driving record you have, your age, and so on. These details matter to your Atlanta car insurance rates because they give the insurance company an impression of how risky you are to insure. For example, they’ll look at the following…
- Your age- Young drivers often pay more for car insurance because they have less experience on the road and are at a higher risk of having an accident. Atlanta teen car insurance will probably cost more than car insurance for an adult.
- Marital status- Another problem for hopelessly single people to be worried about. Drivers who are single get into more accidents than drivers who are married, so married drivers could see lower rates if they have clean driving records.
- Driving record- If you have a history of a series of automobile accidents, you may pay substantially more than someone with a clean record. That’s because you’re seen as being more likely to have another accident and cause another claim. There are many benefits to being a safe driver, and car insurance rates are one of them!
- Credit score – Your credit score may be a factor in your car insurance rates. If you have a good credit score, you could see lower car insurance rates.
- Location- Where you live can alter how much you pay. A small, quiet town is going to have significant differences in car insurance prices compared to a loud, sleepless city. Living in a busy urban environment comes with certain risks – such as traffic, theft, and potential damage to your vehicle. That is another component that going to influence how much you are going to pay.
While details about yourself, such as your driving record and where you live, play a part in determining your car insurance premium, there is additional information that insurance companies need to calculate your car insurance rates. They also use details about your vehicle to figure out what your rate will be. The following are some of the more car-related factors that influence your Atlanta car insurance rates:
- The car itself- The amount of coverage you will want on your car varies greatly depending on the type of car you drive. The size of the vehicle and its engine can also play a part in determining your rates.
- Purpose- Why is it exactly that you’re using this car? Is it a secondary luxury car you use on weekends or is it used to fulfill job obligations? Or are you using it to drive to your university campus across town? Insurance companies realize that constant use is going to increase your risk of getting into an accident.
- How many miles you drive – The question of how much you drive matters because more mileage each year increases the probability of a wreck.
- Safety features- Does your car contain recent vehicle features such as anti-theft protection? Can this vehicle protect you and keep your passengers safe should an accident occur? Your insurance company may inform you that you qualify for certain rewards!
These details are essential to insurance companies when they establish your automobile insurance premium. Details about your driving habits and, well, yourself help them figure out how much a risk you are to insure. Recorded data and statistics help them determine not only the value of the vehicle but how much it would cost if the vehicle needed to be replaced. And all of these things together factor into your Atlanta car insurance rates. So, no, your car insurance premium isn’t just an arbitrary number they pick out of thin air. There’s a lot of reasoning that goes into it.
If you’re looking for car insurance in Atlanta, we can help. Our team of insurance experts can help you shop for the best insurance at the best possible rate. By getting multiple quotes, you can save money on Atlanta car insurance. You can get started with your Atlanta car insurance quotes by filling out our online form or calling us today.