Purchasing insurance as a senior can be depressing – you were used to paying low rates for years, and suddenly there's an increase. However, there are still many things you can do to lower your car insurance rates.
What Determines Car Insurance Rates?
When shopping for car insurance rates, it is helpful to understand what factors determine your quote. If you know these factors, you can work them in your favor and save some money on your insurance. Insurance companies use factors that help to determine the risk level of the individual being insured. The lower you can make your perceived risk level, the lower your premium will be! Here are some of the most common factors:
Driving record – most people know that their driving history will play a part in their insurance rates. Multiple traffic violations or accidents can significant increase how much you pay. Some tickets are more serious than others, but your best bet is to drive safely at all times and avoid violations. If you do get into an accident or get a ticket, consider taking a defensive driving class to remove it from your record or get you a discount on your insurance.
Type of vehicle – the type of vehicle you drive will have an impact on your rates. Newer vehicles typically have higher costs, because they are more expensive to repair and replace. However, safety and security features often get you a discount, and the newer vehicles often have more of these than older ones. Sports cars are more expensive to insure because statistics show that people who drive them are more likely to be involved in an accident.
Your age – this factor plays a huge part in how much your car insurance rates are. Younger drivers will pay more because again, statistics put them as the most risky of drivers.
Relationship status – one factor that might be less commonly known is your relationship status. Married people pay less for car insurance than single people, because they are less likely to be involved in an accident. This could be because they have "more to lose" – a family, home, children, jobs, etc. They drive safer because the stakes are higher.
Finally, location – where you live plays a major part in how much you are going to pay for car insurance. People who live in safer neighborhoods pay less. You will also pay less if you live in the country vs. a city. This is because in a city there are more drivers on the road, meaning more chances for a person to get into an accident. You should also consider where you park your car. If you park in a garage you will probably pay less than if you park on the street.