What Affects Car Insurance Premiums

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New Yorkers shopping for a New York car insurance quote may be perplexed by insurance premiums that vary wildly from person to person. The reasoning behind the premium is simple. Premiums are an expression of risk – the more statistically risky you are to a car insurance company, the more they’ll charge you for insurance. While this isn’t a complete list, here are some factors that car insurance companies use to estimate your statistical risk.

Age: Younger drivers are at greater risk of being involved in a collision, up to the age of 25. The safest age bracket lies between ages 50 and 65.

Gender: Women are statistically safer drivers than men, though the balance has been trending more to equality in recent years.

Marital Status: Married drivers are statistically less likely to be involved in wrecks, and thus pay less than their single counterparts.

Where You Live: Living in areas with more traffic or higher theft rates will lead to higher insurance premiums.

Driving Record: Moving violations (speeding tickets, DWIs) and previous accidents expose a driver’s tendencies and thus make them prone to higher premiums. Non-moving violations like parking tickets don’t generally affect insurance premiums.

Vehicle Type: Expensive cars produce much higher repair bills in case of an accident, while cheaper cars cost insurance companies less to repair. As such, owning an expensive car will also cost more in insurance premiums.

Credit Rating: As disconnected as this may sound, many insurance companies link a poor or nonexistent credit record to higher risk in drivers. Maintaining a good credit rating will result in cheaper car insurance payments.

Occupation: Jobs requiring you to spend a lot of time on the road will increase your statistical probability of being in an accident. Workers with desk jobs are cheaper to insure.

As you can see, a number of factors contribute to the premium you pay. If you’re a young man with a handful of accidents under your belt and trying to purchase insurance for your shiny new convertible, don’t be surprised if the insurance companies ask for a lot in return.

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