When you shop for various insurance providers you might be tempted to limit your coverage in order to keep the costs of your insurance down. This raises your deductibles and can make it more affordable to purchase coverage, but the coverage might not be the best option available to you. There are some other factors that go into your overall insurance rate though, and while you cannot control all of these factors, many of them you can. This in turn will lower your rates and keep your insurance rates at a minimum. Knowing these hidden surprises that affect your insurance rates can help you make wise choices both on the road as well as when you shop for insurance.
While many people are aware that their age and gender contribute to their final auto insurance quotes, not many drivers realize that their location plays a part as well. Most major automobile accidents occur within close proximity to your home. If you live in a very densely populated area where there are many drivers, this can raise your insurance rates as this puts you at a higher risk of accidents, thefts, damage, etc. Also, location applies to repairs. Some parts of the country are more expensive when it comes to having repairs or body work done.
In addition to your location based on population, insurance companies will also try to utilize data that deals with the amount of uninsured drivers in your area. If you do fall victim to an accident, dealing with someone who is uninsured can be a huge hassle for your insurance company. Two of the most uninsured areas of the country are Philadelphia and Detroit. The insurance rates are higher here.
Certain professions put you at a higher risk of accident and insurance companies take this into account. If you are a delivery driver you are on the road a lot and this increases your risk of accident. Other people like journalists, photographers and first responders hop in their vehicles many times each day and are in pursuit of an event of some sort. This can affect your premium.
When you apply for an insurance quote through a broker of some sort, some investigative work goes into finding out your driving history. While you may not report back every incident you have had, insurance companies try to find out this information on their own to get a good idea of the kind of driver you are.
While there are some hidden surprises that affect your insurance rates, doing some shopping around can ensure you get a fair quote that will work for your budget. Also, cutting down on your risk factors not only result in lower rates but help keep you safer as well.