Do you know what factors affect your insurance premiums?
All car insurance premiums are based on risk. Insurance companies must predict how likely it is that a claim will be made, and how much it will cost them to pay out on the claim. One of those risks is based on your driving record and age.
Your driving record has a direct impact on the premiums you pay each year. Your driving record is based on the number of years you’ve been licensed to drive, previous insurance experience and at-fault accidents and convictions you’ve had such as speeding or impaired driving. The better your driving record the lower your insurance rates. Note that statistical results reflect that drivers under the age of 25 tend to be involved in more collisions and, therefore, tend to have higher insurance premiums.
Check back for future Did You Know? segments covering other risk factors affecting your car insurance premium.