Driving a car without car insurance is like taking a daily ride on a one-way street to expensive fees and the dreaded unknown. If you’re a car owner, then odds are, you’ve been paying for car insurance for a while now. While this might get you to sleep easy at night, did you ever take the time to wonder how your insurer arrived at the premium you’re paying for?
There are a lot of insurers such as newjersey-insurance.net who will offer a New Jersey auto insurance quote comparison, but as a paying customer, you should understand exactly how these rates came to be. Clear the smoke and find out what factors affect the auto insurance fee estimation process with this list.
How Auto Insurance Quotes are Determined
- Driving Record – This one is pretty much a no brainer. Because car insurances are issued to make sure that you’ll be safe and protected in the future, an insurer will want to know exactly how likely it is for you to get in an accident. This helps them understand whether you need more protection or not. If for example you were involved in several car accidents in the past month, they may increase your premium to cover for likely future incidents. A good thing to remember: the cleaner your record, the smaller your premium.
- Age, Gender, Marital Status – Age is a good indicator of experience. The older you are, the more time you’ve probably had behind the wheel, and the less likely you are to cause an accident. Males and females have been observed to make use of different driving techniques. Because of these differences, studies have shown that men are more likely to be involved in accidents than women. Finally, marital status comes into play under the information that married drivers are less likely to cause accidents than single drivers.
- Location – Where in the world are you located? Insurance guidelines may change depending on your area of residence. New Jersey auto insurance quote comparisons might give you a better idea on what to expect when you try to find out just how much you should pay for your premium.
- How the Car is Used – Depending on the use of the car being insured, an insurer might issue a higher or lower premium. Cars that are used on main roads for daily trips might require a higher premium, while those that are used for short trips to nearby areas along quiet streets might require a lower premium.
Keep these trusty details in mind when you talk to your insurer about your premium. Make sure that you ask for the latest New Jersey auto insurance quote comparison to give you a better idea on the going rate in present times.