What are the Common Factors Upon Which Car Insurance Premium Depends?
Do you want to know how accidents affect insurance premiums? What are the other factors which can increase or decrease your car insurance premium? If you are looking for an answer to these questions then the details we will be provided in the following sections will help you clearly understand how things work.
Effect of Accidents on Car Insurance Premiums
Irrespective of how good a driver is, he or she can have a bad day and get into an accident like, collide with another car or miss the speed bump. If you are involved in an accident then it can increase your insurance premiums.
Insurance firms manage claims by establishing at fault party. In case of a collision, the insurance firm makes use of fault determination rules for deciding who was at fault. If it is judged that you were at fault then it can result in an increase in premiums.
A person is able to qualify for such accident forgiveness when you maintain a clean driving record. As for example, when you have no at-fault accidents. If you are able to qualify then the first at-fault accident will be forgiven by the car insurance firm. In such situation, your insurance premium will not go up due to any partially at fault or at fault accident. You also need to keep note of the fact that your insurance firm will be forgiving only one accident. If there is a second accident then car insurance premium may well increase.
Let us now answer few of the common questions related to insurance premiums.
Common Questions About Car Insurance Premiums
Will a two-door car be more expensive to insure in comparison to a four-door car?
Not exactly, a four-door car may well be more expensive than a two-door one in some cases. There are various factors which an insurance firm looks into to decide about the premium. These factors include theft frequency, previous claim history, repair cost, and car's price.
Do Car insurance premium depends upon the location you live in?
Yes, it is true, your location will be one of the factors which will be considered to decide about the premium you will have to pay. The premium amount will vary depending upon whether you are living in a rural, suburban, or urban area.
In urban areas, the premium amount will likely be higher since there is a higher rate of accidents because of more number of cars on the road.
Likewise, if your home is in an area which is known for the high rate of auto thefts then also premium amount will be higher than normal.
Can a parking ticket increase your insurance premium?
No, parking tickets will not increase your premium amount since parking tickets are not considered in driving record or in car insurance. But, if there are unpaid fines then they will certainly hamper your ability to get the driver's license renewed.
As we can see, insurance premiums depend upon different factors and by keeping note of all of these factors you will be able to lower the premiums you have to pay on your car insurance.