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New York Factors that Affect Car Insurance Rates

If you're thinking about auto insurance, you're probably thinking about what you can do to save money. There's good news and bad news when it comes to saving money on auto insurance. Your insurance premiums are based on a lot of factors. The good news is, you can change, or at least influence, a lot of the factors. The bad news is that you can't change or influence all of them. For a look at the most significant of these factors, continue reading below.

Factors You Cannot Change

Your age goes far in determining your vehicle insurance premium. Younger drivers, specifically those under age 25, are considered inherently more risky than older drivers. Studies show that they tend to drive faster, get into more accidents, and break more traffic laws that those who have been driving for a longer period of time. Thus, younger drivers almost always pay more in insurance than their older counterparts.

Gender is another important factor affecting insurance rates. Men are considered a higher risk to insure than women, because men have higher levels of aggression than women. Thus, insurance companies have determined that men are more likely to engage in risky driving behavior and cause accidents than female drivers, so they will pay more in insurance premiums.

Whether or not your are married also plays a role in your insurance premium rates. Married people are considered more stable, and thus less likely to take risks while driving. Insurance companies believe that married people have a stronger sense of responsibility, and so drive more carefully. Across the board, regardless of age and gender, married people get into fewer accidents and so pay lower insurance premiums.

One of the single most important factors in determining your auto insurance premium is your driving record. The more accidents and moving violations you have, the riskier you have proved as a driver and so the more it will cost to get insurance.

It is important to note that an auto insurance company cannot count accidents against you that you don't report to them. If you get into a small fender bender, it might save you in the long run if you pay for any damages out of pocket, rather than reporting the accident to your insurance company and risking a hefty rise in your premium's cost even though the accident was small. Since many insurance companies raise premiums based on the number of accidents you have had and not on how severe the accident was or how much they had to pay out because of it, a small accident can affect your rates as much, or almost as much, as a significantly larger one.

While you can't change the way you have driven in the past, you can definitely choose to drive better in the future. Though this won't guarantee that you avoid accidents and tickets, making a conscious choice to obey the laws will aid you in getting a better driving record.

Most auto insurance companies remove moving violations and accidents from your insurance record after a certain period of time. Check with your company to see how long anything that's currently on your record will continue affecting your rates. If you can keep your record clean or at least keep incidents to a minimum until that time, you pay lower rates once old incidents are removed.

Factors You Can Change

Your occupation and your hobbies influence your automobile insurance rates in NY more than you probably think they do. Insurance companies have done extensive research on which occupations and hobbies tend to attract people who take higher risks, and adjust insurance rates accordingly. While it's probably not worth it to change your occupation for a lower auto insurance rate, this might be something to take into consideration if you're considering changing jobs already. In addition, you might decide to take up some more sedate hobbies in addition to any risky ones you already have, to help balance things out.

Where you live is also an important factor in determining insurance rates. Those who live in rural areas have a significantly lower chance of getting into an accident with another vehicle simply because the concentration of vehicles on the road is so much lower. In addition, those who live in the suburbs are less likely to get into accidents than city-dwellers. If you're considering a move, take your auto insurance rates into consideration before you relocate.

Along those same lines, how much you drive also influences your vehicle insurance premiums. The more time you spend on the road, especially during commuting hours, the more likely you are to get into an accident. Car insurance companies in New York will ask you for this information before quoting you a rate, and it definitely affects the number they give you. Thus, moving to a more rural area, while it may lower your rates because there are fewer cars, may also raise your rates because you will spend more time on the road between work and home each day.

Where you drive is also key for an auto insurance company trying to determine your rates. People who drive in the city have more accidents than those who only drive in the country, and certain cities have particularly bad reputations when it comes to driving style, moving violations, and the number of accidents per capita. In addition, certain areas of certain cities are especially known for vehicle theft or other vandalism, and it will cost more to ensure your care if you drive in one of these areas.

Your credit rating is another influential factor when determining automobile insurance rates in NY. Those with a lower credit rating are a higher risk to insure, while those with a higher credit rating are lower risks. The auto insurance industry has done studies which show that people with a lower credit rating are more willing to take risks driving, just like they are with their money, and that the opposite is true for people with a high credit rating. Thus, it is worth it to fix any errors on your credit report before you look for better rates on auto insurance.

Your car is the final factor that affects your insurance rates in New York. This includes its make, model, and year, as well as any anti-theft or safety devices you have installed. Newer cars and expensive cars cost more to replace, so insurance on them will be higher. In addition, some cars are more likely to be stolen than others, so those models will cost more to insure. Many auto insurance companies offer discounts for having a car alarm or automatic seat belts installed, because these make theft and injury less likely. Before you purchase a car, contact your insurance company to determine how much it will cost to insure. You can save yourself a bundle!

There are so many factors affecting your auto insurance rates that you can control that everyone can find a way to save some money. From where you live to the car you own, you can change your insurance rates on a number of levels. Think about this list before you look for new insurance, and you'll be sure to pay less.


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