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4 Common Criteria That Have a Direct Impact on Insurance Rates

18 Dec

4 Common Criteria That Have a Direct Impact on Insurance Rates

As more and more options for insurance coverage become available in the marketplace, consumers are faced with the challenge of picking the right coverage.  How can you tell whether or not the policy you’re interested in is too expensive?  How can you protect against being under-insured, or over-insured?  How many insurance companies are willing to accommodate you? These are just a few of the many different questions people have to resolve when window-shopping for insurance.

It’s All About the Research:

               If you want to avoid being saddled with insufficient coverage, all it takes is due diligence. Insurance Expert Emily Delbridge advises that “Car insurance rates are always changing… Knowing whether or not your car insurance rate is good plays a big role in your overall financial well-being. Understanding where improvements can be made could save you lots of money in future premiums.” Here are a few important factors which impact insurance rates:

1.    Finances:

               Insurance is a service which is directly related to a person’s budget.  The more you can afford to spend on insurance, the more comprehensive your coverage will be.  If you have a small budget, you can expect to secure only the most essential coverage.  But if you have a flexible budget, it’s easy to include riders which cater to every possible emergency.

2.    Vehicle Make/Model:

               The type of car a person drives also helps to determine how much insurers charge for coverage.  Commonplace vehicles, attract lower rates. This is because they’re easy to repair.  On the other hand, high-end vehicles naturally come with expensive coverage.  This is because high-end vehicles are vulnerable to theft, vandalism and traffic collisions.

3.    Your Location:

               Insurance can get more expensive depending on where your vehicle is garaged.  If you spend most of your time driving in urban centers, dense traffic forces insurance companies to raise rates.  However if you spend most of your time driving in suburbs or rural areas, thin traffic reduces the probability of car accidents.  Which reduces the rates people get charged for insurance.

4.    Driving History:

               One of the biggest factors that help to determine insurance rates is driving history.  The more high-risk a driver is, the more insurers are going to charge to facilitate coverage.  Some of the things that contribute to a high-risk reputation include:

▪ Age. ▪ Criminal Record. ▪ Claims History. ▪ Type of Vehicle.


               If you’re going to invest in insurance, it’s best to take your time when looking for the perfect coverage.  Instead of automatically committing yourself to the first available insurer, do plenty of policy comparisons and assessments.  Insurance is such an important amenity that it shouldn’t be taken lightly.  You should only sign up for a policy when you know for a fact that it will cater to the majority of your personal needs. For more information, visit our website or give us a call at 1-800-639-7654 to find out how Adriana’s Insurance Services can help you stay safe. We got you covered!