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Oklahoma Insurance Factors That Affect Your Rates

Those kids who were picked on in high school for wearing pocket protectors and glasses held together by tape are now the adults who work in the car insurance industry as actuaries. Actuaries are the math oriented employees of insurance companies who have developed the equations and formulas that determine to what likelihood you will cost your insurance provider monetary loss. In Oklahoma, as in most other states, the information you provide car insurance company is used to assign you a risk assessment value. Each of your characteristics is assigned a risk value.

The total sums of these values are then weighted against the national claims average of other motorists who share your traits. This comparison is then used to determine what your car insurance premiums will be. Many motorists feel it is unfair to allow an insurance company to determine, unchecked, what you will pay in car insurance premiums, mainly because insurance is a government mandated requirement. However, an insurance company is a for-profit business, and it must operate as such. Education and research are going to be your most valuable aids in determining in what capacities you can reduce your rates to combat this business mindedness.

Easily, the most influential factor that will affect your car insurance rates is your driver's license record and driving history. An accumulation of tickets, a history of collisions, or a history of previously filed claims will lead an actuary to conclude that you are likely to be involved in such incidents in the future. Therefore you, as a motorist, pose a higher risk to your insurance provider. If you are deemed to be a high risk driver, you will reap the consequences through your car insurance rates.

The second most influential factor in determining your premiums is, arguably, your demographic and vital statistics. Your age, for example, is highly influential. Motorists who are under the age of twenty five present a higher probability of risk to an insurance company, especially if they are male. Young adult drivers, from ages sixteen to twenty one, pay some of the highest premiums charged among motorists. In this category, those who are twenty two to twenty five years of age pay a slightly decreased amount. Generally after the age of sixty five, an adult is assumed to have a higher risk value by an insurance company. An insurance company assumes that a motorist, of this particular demographic, will incur a deficit in their mental and physical capacities.

The other primary vital statistics an insurance company brings into consideration are your sex, your marital status, and your location. Middle age, married women are commonly known to be the demographic that is charged the lowest amounts in premiums among motorists. This bias of gender is most prominently seen in young adult drivers. Your location is also somewhat influential in the rates you are quoted from an insurance company. When you seek to obtain a car insurance quote, the first question you are often asked is what your zip code is. From your zip code, an insurance company gathers data concerning the crime rates in your community. This information is then calculated to determine how likely it is that you will be victimized by a crime, such as car theft or vandalism. Therefore, if you live in a larger city, such as Tulsa or Oklahoma City, your rates are likely to be higher than if you live in a smaller town, like Collinsville.

The last major determinant affecting your car insurance premiums is the vehicle itself. A higher end luxury car is going to be more costly to insure due to the fact that it will be significantly more expensive to repair in the event of an accident. The national claims rate for your particular make and model of vehicle will be taken into consideration as well. A question you may take into consideration is how safe your vehicle is. Many insurance companies will offer a discounted rate to cars that possess multiple safety features. The most common features are air bags and anti lock brakes. However, other options like GPS are available to you. All of the factors are input into their various formulas by actuaries to determine your car insurance rates.

Were you aware that your credit score and credit history play an influential role in determining your premiums? Most motorists are not. In the past, your credit score did not factor into the determination of your rates. However, many car insurance companies are using it as a gauge to determine how responsible you are with your finances. When you purchase a car insurance policy, you are entering into a legal and financial contract with an insurance provider. The insurance company wants to know how likely you are to honor this agreement. Your credit history will indicate your ability to handle past commitments and thus show signs of what the future holds.

Other smaller factors that are taken into consideration for your rates are your occupation, the amount of mileage you drive per year, your years of driving experience, and whether or not you have ever allowed your car insurance coverage lapse. Your occupation is of minor importance. However, discounts are often extended to motorists for field in which they work. For example, your insurance provider may offer you a discounted rate if you are a teacher, an emergency medical technician (EMT), or a fire fighter. The amount of mileage you travel each year, including your commute to work, is also an influential factor. An insurance company assumes that those who are on the road less are less likely to be involved in or be the cause of a collision. The years of driving experience you have are taken into consideration as well. Often, if you have three or more continuous years of accident free driving, you can qualify for a safe driver discount from your insurance company.

There are numerous factors that an insurance company in Oklahoma takes under consideration when calculating the overall risk you pose to them. There are precious few motorists who fit an insurance company's ideal profile. Each person's circumstances are unique to them, and it is the sum of your risk values that will ultimately determine your car insurance premiums.

Where do you begin to start in saving money? Your first and foremost step is to be informed. Education and research can only benefit you. If you do not understand how certain forms of coverage work or if you are unsure what your state's insurance requirements are, you can contact your insurance agent or a customer service representative from another company to assist you. A professional insurance agent can answer your questions and can recommend solutions to your needs. You can also seek out a site on the Internet that can provide you with a car insurance quote.

After filling out a brief questionnaire, you will be provided with the rates of multiple insurance providers on the policy you are interested in. After you have purchased your insurance policy, make certain that you familiarize yourself with the declarations page of your policy. The declarations page acts as point of quick reference for you. It consists of the limits and deductibles on your policy and specific scenarios your insurance company will cover.


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