Most people are well aware that their driving record, the type of car they drive, and their coverage limits all play a role in how much they pay for auto insurance. However, when someone is looking for cheap car insurance and ways to reduce their rate, they may discover that car insurance companies use many factors to determine what rate one person will pay. In fact, many people do not even realize how many factors are looked at. Here are a few of the factors that can affect how cheaply you can get car insurance.
Your Credit Score
Insurance companies in most states can pull your credit score and use your score to determine how much you will pay for auto insurance. Those with poor scores typically wind up paying more than those with good scores. It is important to note that lawmakers are starting to question this practice, and in some states, it is being prevented. However, in most states, your credit score directly impacts how cheaply you can get car insurance.
How Many Miles You Drive Your Car Per Year
Another factor that affects your auto insurance rate is how many miles you drive your car per year. When you sign up for car insurance, your insurer often asks how many miles you drive per year. However, when you change jobs or even start working from home, the number of miles you drive can change. If you drive fewer miles than you did in the past, call your car insurance provider and update this number. It may help you get cheaper car insurance.
Who You Are As a Person
Lastly, car insurance companies can look at who you are as a person to determine what rate you will pay for car insurance. Your gender, the highest level of education you completed, your marital status, and even your job title can all affect your car insurance rates. As such, if you have recently gotten married or graduated college, you may want to let your insurance provider know. They may provide discounts for some of these major life changes.
If you are looking to reduce the amount you pay for car insurance and are looking to get the cheapest possible car insurance for your needs, it is always important that you understand what factors affect car insurance rates. Improving your credit score or letting a car insurance company know exactly how many miles you drive per year can help you get the lowest possible rates for your situation. In addition to this, it is always important that you price out car insurance from multiple companies. This can help you find cheap car insurance in your area.