4 Important Factors that Affect Philadelphia Car Insurance Rates.
What you pay in car insurance is based on several factors. While you may be a good driver, you may still pay more than someone else who has a less stellar record. That does not mean you should not drive safely. However, by knowing this information, you’ll get more insight into how insurance providers figure rates.
That’s because insurance costs are based on age and gender, where you live, how much you drive, your driving record, and your deductible and credit score. Therefore, some of the factors in the calculation are based on risk factors that have nothing directly to do with a policyholder.
These criteria are used to determine rates for Philadelphia car insurance customers. Keep these factors in mind when reviewing insurance and comparing rates.
Check insurance costs every six months to ensure you’re getting the best price for your insurance coverage.
1. Age and Gender
As noted, your age and gender play a part in how much you pay for insurance. Insurers based the calculation on auto crash statistics. Statisticians state that younger men, for instance, in their teens, have more car accidents while older people, especially women, have fewer mishaps. Therefore, you’ll naturally pay more for insurance if you’re a man who is 18 years old than if you’re a 40-year-old woman.
Moreover, a 25-year-old man will, on average, pay 2.5% more than a woman of the same age. The difference is even greater between men and women who are 23 years of age. Men pay 6.7% more on average. Therefore, what you pay in this respect is strictly based on others’ driving records – not just your own.
2. Where You Live and How Much You Drive
If you live in Philadelphia, you’re apt to pay more on car insurance than if you live, for instance, in a quieter place such as Rapids Fall, South Dakota. Also, what you pay is also based on where you live in the city.
If you live in a higher crime area, you’ll be assessed more for coverage than if you live in a low-crime neighborhood.
Do you live far from work? How much do you drive per year? Insurance companies also consider the time you spend driving, based on your daily commute or yearly mileage. After all, if you spend more time on the road, you’ll increase your risk of getting into an accident.
3. Your Driving Record
What does your driving record look like? If you’ve had a charge of DUI, you will pay more money for instance, than if you have a spotless record. You can even get a safe driver’s discount from some insurance providers. So, if you have a good driving record, check to see if the insurance company will give you a discount.
4. Your Deductible and Credit Score
People with better credit scores get better rates than people with poorer ratings. If you want to lower your car insurance premium then, make it a practice to pay your bills on time. Also, your deductible factors heavily in what you pay each month for coverage.
For example, you’ll usually pay about $200 more for insurance with a $500 deductible than if you choose $1,000. However, don’t go with the higher deductible just to save money.
Answer this question first – Can you part with $1,000 out-of-pocket before the insurance kicks in? If the answer is no, you should choose the lower deductible even if you’ll have to pay more monthly.
Compare Insurance Plans Now – You Might Be Able to Save Some Money
Use the above information to help you compare insurance plans. Keep on top of what you’re paying for auto insurance each month so you can enjoy the best protection at the most affordable price.
