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Factors That Affect the Cost of Car Insurance

Car insurance is extremely essential for anyone who owns a car, but it is known to be quite costly. Many people wonder what factors affect the cost of car insurance so that they can take measures to reduce the amount of money they have to pay for insurance. Well, the following are the factors that affect the cost of car insurance the most:

A person’s age and gender

A factor that affects the cost of a person’s car insurance quite considerably is their age and their gender. As people grow older, they become more prone to accidents, and the members of one gender are known to be more prone to accidents than the members of the other, which is why age and gender is a factor affecting the cost of car insurance.

A person’s locale

Research shows that people mostly get into accidents near their home. This is the reason why the area a person lives in is also known to be able to increase or decrease the cost of car insurance.

The safety rating of a person’s car

All cars have safety ratings, and cars with higher safety ratings are considered to have lower chances of endangering the lives of passengers, even if they get into an accident. The safety rating of a person’s car can affect the cost of their car insurance quite significantly.

The size of a person’s car

The size of a person’s car is also known to be able to affect the cost of their car insurance. Cars that are larger in size are have the less damage inflicted on them in accidents as opposed to smaller cars, which is why larger cars tend to have relatively cheap cars insurance premiums.

The model of a person’s car

Burglars prefer stealing some specific cars more than others. Since some models of cars are more prone to being stolen than others, the model of a person’s car also affects the cost of their car insurance.

A person’s driving history

A person’s driving history shows how prone they are to getting into accidents. This is the reason why a person’s driving history also affects the amount of money an insurance firm charges them for car insurance.

A person’s credit score

Many insurance companies also consider a person’s credit score when deciding what car insurance rates they will be charging them. However, there is no specific degree to which a person’s credit score can affect their car insurance rates.