Car Insurance Rates
What Determines Your Car Insurance Rates?
Car insurance companies can use your credit report to bump up your insurance costs. 46 states will allow car insurance companies to look at your credit report to increase your rates. Some states such as California, Massachusetts, Hawaii, and Maryland don't allow insurance companies to do that.
Car insurance usually look at your previous driving record to determine your rate by using a point system. Where you live and the infraction that happened determines how long the points remain on your driving record. Your car insurance will rise with any tickets, accidents, or parking violations you have gotten.
Age, Gender and Marital Status
Another way car insurance companies find your rate is by your age, gender, and marital status. New drivers are always considered as a higher risk for accident so the rate will increase. Married women usually have the lowest car insurance rates while, men that are not married have the highest insurance rates.
Car insurance rates are also determined by what kind of car you drive, mileage, your deductible your willing to pay in order to file a claim and more. There are some ways to help reduce your car insurance rate even though you may not have control over some of the factors that determine it but it's better to reduce it as much as you can. For example you can check your credit history for accuracy.