Why Car Insurance Rates Differs from Person to Person

Car Insurance is making your own vehicle secured in terms money return in case of any damage / uncertain loss due to accidents or anything else. Car insurance is provided by many companies. You must choose the one which according to you, suits the best. Insurance rate is the amount to be charged against the insurance done for the vehicle. The insurance rate is called as premium.

Insurance rate or the premium, is different for each company. It is also different for different people. The type of vehicle also decides the premium. There are lot of factors on which insurance rates depends. No two company offer the same insurance rates. There is often some variations in that.
The factors on which car insurance rates depends are as follows –

  1. Age of the person : This is one of the important factor. Younger people get a higher rate and so is the case of older people. whereas persons of middle age, say between 25 – 35 years, gets lower insurance rates. This is because younger people are more likely to do the accidents due to lack of driving experience. Older people has increased reaction time & they are not able to react to the situation immediately and end with the accident.
  2. Driving Records – This includes the history of your driving experience. This counts the number of accidents done by you, no. of times someone hits your car, no. of times you hit someone’s car. Also, they keep a record of how many times you have been caught with DUI and DWI. The speeds with which you are caught with. This all determines your insurance rate. If you are in habit of accidents or likely to do so, you will have to pay a higher insurance rates. Some companies have the rule that those who are caught with DUI and DWI, won’t get the insurance.
  3. Type of Car – The owners of the cars which are too fast for the roads such as Maserati and cars which can breakdown at any moment like junk car, are charged with higher insurance rates.

So at the end we conclude that car insurance rates differ for different persons. It all depends on the quality of vehicle and your driving experience. Be careful while driving which will help you get a insurance with lower rate.

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Tim Webbar on April 28th 2011 in Automobile Insurance

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