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Massachusetts Factors That Affect Car Insurance Rates

As a whole, the majority of motorists out there assume that vehicle insurance rates are predetermined by insurance companies, and therefore, they do not bother comparing prices between companies. This is the worst thing you could do for yourself. Most motorists in Massachusetts would be surprised to learn that the rate a friend of family member pays for car insurance would not be the same rate they would be quoted by that company. There are an infinite amount of factors that influence the rate your will pay for car insurance. By researching these different factors, you will be well equipped to manipulate these factors so they can produce lower rates for you.

The most efficient way to compare the rates of multiple car insurance companies is to receive a quote on your insurance coverage. However, before you can receive a quote, you must understand how your premiums are determined. For each potential client, an insurance company conducts a risk analysis. Factors, such as your driver's license record or your vital statistics, are assigned a risk value. The sum of these risk values is then weighted against the national claims average of motorists who share similar traits. This information is then used in determining what you will pay in premiums.

The vital statistics and driving history of a policyholder are two of the most influential factors when it comes to determining premiums. For example, young males, who are under the age of twenty five, will pay more in car insurance premiums than young women. The vehicle you wish to insure will also pay a prominent role in the rates you are quoted, as will your desired forms of coverage. A higher-end luxury vehicle will cost more to insure than a common household sedan due to the fact that it will be more expensive to repair in the event that it is involved in an accident. Likewise, optional forms of coverage, such as comprehensive insurance or GAP insurance, will raise your premiums.
Factors that affect your rates include:

Your age - Motorists who are under the age of twenty five are considered to be amongst the high risk categories of drivers. Due to a combination of inexperience and recklessness, this age group has a high number of automobile collisions each year. In a similar manner, those who are over the age of sixty five are considered to be high risk drivers as well. An insurance company assumes that at this age, an individual will begin to suffer from diminished physical and mental capacities. Therefore, the chances that the individual will be involved in a car accident increase.

Your gender - Women do enjoy considerably lower car insurance rates when compared to men. Middle aged, married women possess some of the lowest car insurance rates in the country. However, for unexplainable reasons, senior citizen women pay more than males for car insurance rates.

Your marital status - Because marriage is an indicator of an increased maturity level, a married individual will pay less than a single individual with an identical driving history.

Your geography - One of the first pieces of information an insurance company will ask for is your zip code. From this information, an insurance company is able to derive a sense of your financial well being. For example, if you live in a suburb of Brookline, Massachusetts, you are considered to be more financially well off than if you live in an inner city neighborhood of Boston. An insurance company can also obtain the local crime rates for your neighborhood from your zip code. This allows them to surmise how likely you are to be the victim of a crime like theft or vandalism. Your premiums will then be calculated according to this information.

Your driving history - This is also a highly influential factor. Your driving history is an indicator of the behavior patterns you engage in while on the road. A history of traffic infractions or collisions will classify you as a high risk motorist. Your insurance company will generally take the last five years of your driving history under consideration when determining your premiums. As the years pass and your record improves, your premiums can be lowered.

Your vehicle - The type of car you drive will also influence your rates. A family friendly sedan with plenty of safety features will be among the cheapest cars to insure. Certain additions to car, such as an aftermarket sound system or chrome rims, may increase the price you will pay for insurance. This is due to the fact that these features raise the profile of your car, thereby making it a target for theft.

Your credit history - When you purchase a car insurance policy from an insurance company, you are entering into legal contract with that company. Your credit history serves as a hallmark about how responsible you are concerning your finances. An insurance company likes to know that you will honor your contract.

Your occupation - Data, gathered from previous collisions, has shown that certain occupations are associated with a lower risk value. A delivery man is more likely to be involved in an accident than a doctor simply because they drive more. Additionally, insurance companies will often extend discounts to you because of your occupation, such as working as a teacher or a firefighter.

Your annual mileage count - Those who maintain a low annual mileage count are much more likely to pay a lower cost in insurance premiums. From an insurance company's point of view, the less often you are on the road, the less likely you are to be involved in an accident. Thus lower mileage leads to a lower risk that they will have to pay for the accident. Premiums are adjusted accordingly.

Your affiliations - Discounts on your insurance premiums are often extended to motorists who below to certain organizations, like AAA, the AARP, or MENSA. You may also be able to obtain a discount on your car insurance rate through your employer.

Factors that affect your car insurance rates to a lesser degree include:

  • Your daily commute to work.
  • Your years of driving experience.
  • Business related use of your vehicle.
  • The forms of coverage you wish to purchase.
  • Theft protection devices.
  • The number of cars and other drivers on your policy.

In today's dour economy, insurance companies are striving to entice new customers to conduct business with them. Similarly, they are also working to retain the customer base they have already established. This situation can work for your advantage. There are multiple discounts on policies available to you. It is your responsibility to inquire with your insurance company as to which ones you qualify for.

For example, if you have conducted business with your insurance provider for an extended period of time, you may qualify for a customer loyalty discount. If you are not satisfied with the offerings of your insurance company, you can receive your quote on car insurance to investigate what your other options are. By using price comparison techniques, you can gauge which insurance company will quote you the most affordable rate according to your characteristics. By utilizing available discounts, you can lower these rates even further. Your potential savings can accumulate into a substantial amount of money.


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