Car Insurance – How Did They Calculate That?
You woke up this morning to find a message from your car insurance company. They said they’re raising your rates…so you have a few questions about how they calculated that.
How much does the average driver pay? How much did I drive last year? Do these factors matter when deciding if my rates will be different than the average rate? What are other factors that could affect my rate and its calculation? And finally, what can I do to lower it?
If you've got any car-related question, this post is for you! We answer all those questions and more as we explore how insurance companies determine their customers' rates.
Before we dive into the big questions, let's talk about all the little ones.
How Much Does The Average Driver Pay?
The average driver pays 18.2 cents a mile to insure $40,000 worth of damage would be $1,800.
Let’s say you're driving a 2011 Ford Focus Sedan and your rate is currently at $897 a year. That means you're paying $1,064 more than the average driver for insurance that covers 6% more damage than the average car on the road gets in an accident every year.
So if you’re paying $897 a year for your current car insurance policy, you’re spending about $19 more than the average driver.
How much did I drive last year?
Your driving pattern is another factor that can affect the rates you're quoted. Insurance companies want to know how much you’re going to be on the road and what your habits are like when your car is moving. For example, if you’ve had multiple accidents in a short period of time, they might increase your rates because they suspect that you are more accident prone than the average driver.
Do those factors matter when deciding if my rates will be different than the average rate?
The factors above determine how much you'll pay for insurance. It's possible that you could get a price break on your insurance if you drive safely and stay accident free.
What are other factors that could affect my rate and its calculation?
Location: You'll pay more to insure your car in an area with higher theft and vandalism rates. If your car is more attractive to thieves, the insurance company may charge you more to cover it.
Make and model of your car: Certain cars are more prone to theft and are therefore more expensive to insure.
The coverage you choose: The more coverage you have on your policy, the higher the insurance premium.
Your personal information: How old are you? Do you have a clean driving record? What credit score do you have? Insurance companies use this information to determine how risky it is to insure you.
And finally, what can I do to lower it?
Well, if there's one thing that we know about insurance companies, it's that they don't make money by giving things away. So, if you want to lower your rate, you're going to have to do something that comes up in your driving habits that is different from the average driver.
Well, it's time to get started! Take our quiz and we'll show you how insurance companies calculate your car insurance rates.
...the more coverage you have on your policy, the higher the insurance premium...
Click here for a free quote on vehicle insurance from one of our trusted agents near you!
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Title: What To Do If Your Car Gets Stolen
Date of article / author: 27/May/15 - 10:54 AM
URL for this article : http://www.makemoneylesson.com/how-to-get-your-car-back.html
As we all know, the current trend of stealing and vandalizing cars has become one of the most common criminal activities in the world today. And getting hit by a victim can be devastating. Here are some useful tips on how to recover your stolen vehicle based on what happened to me when I discovered my car was gone.
You have come back from an errand, and you find out that your car is missing. It’s then you realize someone has stolen it from somewhere you parked it, leaving the door open and your belongings inside.
What should you do? Your first thought may be that it’s gone forever. But here are some things you can do to get it back:
1. Call the police and tell them your car is missing.
2. Contact your insurance company and report the car as stolen or a hit-and-run accident with the local police department.
3. Write down the license plate number and description of your vehicle along with any other unique features you can remember about your car’s appearance in case someone spots it somewhere in case it is found back on its own or if somebody reports that he/she has seen your vehicle.
4. Contact all local businesses, including gas stations, hospitals, hotels, etc.