Most people already know it’s important to shop around for the best rates on Auto Insurance in South Austin TX, but few are aware of the factors that can increase premiums. When these factors are present in a person’s life, they indicate a higher likelihood of a claim. To compensate for the increased risk, insurers charge higher premiums. Below are several things that can make auto insurance more expensive.
Purchasing a New Vehicle
Because new cars are worth more than older models, their replacement cost is higher. Furthermore, if a driver leases or finances the vehicle, they’ll likely be required to have full coverage at a predetermined level. According to a recent study, trucks, SUVs, and minivans are less expensive to insure than other, higher-priced models. However, drivers shouldn’t assume higher premiums only come with sports cars and exotic vehicles.
Having a Longer Commute
A long commute doesn’t just cost a driver fuel and time. It can also increase their insurance premium. With a long drive to work, there’s a greater chance of an accident. Furthermore, if someone is in a business where they have to drive frequently, they’ll pay for the increased time they’ll spend on the road.
Moving
Though a person’s actual risk is partly determined by the ZIP code where they reside, city dwellers are statistically more likely to have accidents. When more people live in an area, there are more claims, and it’s reflected in an increase in insurance premiums. If the move brings the driver to a state such as Oklahoma, Alabama, or Florida, they’re paying for the high number of uninsured motorists in those states.
Age, Gender, and Marital Status
While it may seem discriminatory, certain groups of people pay more for Auto Insurance in South Austin TX. If someone is unmarried and childless, they’re lumped into a high-risk category. Those who are male and under the age of 26 pay higher prices as well.
In Conclusion
Insurance rates are often based on factors outside the customer’s control, such as occupation and age. Understanding the factors that can drive up premiums can help drivers shop around and get the best deal. Call Patrick Court with State Farm for more details or to request a quote.
