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Pennsylvania Factors that Affect Insurance Rates

In the state of Pennsylvania, factors that affect insurance rates are numerous and disparate. Some of them have to do with your insurance profile as a driver, things that you bring to your policy which can affect its pricing. Others are things that have nothing to do with you as a person or your performance as a driver. With so many factors affecting auto insurance rates of Pennsylvania drivers, it is smart to stay on top of all these variables to keep as much control over your policy premiums as you possibly can.

Drivers Characteristics Influencing Premium Prices

Auto insurance companies in Pennsylvania and in states all across the country have specific characteristics they look at in every covered driver when they determine rates for auto coverage. One well-known example is the age factor. There is nothing you can do about your age or the amount of driving experience you might have, but being aware that it can work in your favor (or against you) can help you to wrest a little more control over your premiums.

For example, young drivers under the age of 25, especially teens with less than three years of experience behind the wheel, pay a large surcharge on their auto premiums even if they do not have any tickets or accidents on their record. If you are a new driver just getting set up with your auto insurance coverage, be aware that these surcharges exist...and that not every company will punish you equally for your age. If you fall under any kind of high-risk category (and auto insurers do classify young drivers as high-risk), you have the right to seek out quotes from other qualified Pennsylvania auto insurance providers.

Gender also plays a role in determining Pennsylvania auto rates, particularly for the younger set. Statistics show that young men tend to drive more aggressively and to take more risks behind the wheel than the general driving population, and their accident rates reflects this. They are regarded as a greater risk to insure by providers and thus they pay more for coverage, even when compared to young female drivers.

Your marital status as a Pennsylvania driver will also play a role in determining your auto premiums. Married drivers are seen as more stable and exhibiting more predictable behavior behind the wheel. They are also shown by industry research to be involved in fewer accidents than unmarried drivers. These types of differences may seem unrelated to our driving performance, but without direct access allowing them to monitor each of us and our driving habits, all providers can do is base pricing on inferences based in indirect data.

The way that you earn a living and even the location where you work, also play their parts in setting the price you pay for insurance. Your occupation and the locations where you typically drive each are important factors insurers take into consideration. Data based on industry tells insurance providers how risky your job is relative to your auto insurance. The places you drive and their relative safety in the way of traffic patterns and theft rates also have an impact on your Pennsylvania auto policy premium.

Much like the places you drive for your work, the place you live and the characteristics of your home town are very influential in increasing or decreasing your auto insurance prices. If you live in a relatively low-traffic, low-crime suburban or rural area, for example, your rates might be lower than they would be if your home address was in a large city with heavy traffic and more opportunities for thieves to take advantage of unsuspecting auto owners.

How Your Vehicle Influences Premiums

The very car you drive can greatly affect your Pennsylvania auto premiums. For example, some vehicles are more theft-prone than others, which would raise your comprehensive rates higher. Some perform better than others in vehicle crash tests, making their collision coverage costs less expensive. The value of your vehicle also has some bearing. For example, your comprehensive and collision coverage limits are based on the fair market value of your vehicle. The more the car is worth, the more insurance the provider is essentially providing against loss.

The features your car comes equipped with can save you money on your auto rates in PA. Anti-theft features, anti-lock braking systems and motorized seatbelts all qualify you for discounts adding to your savings on your Pennsylvania auto insurance premiums. Keep this in mind when considering making an auto purchase: items that may slightly drive the cost up on a vehicle will make it safer, and will also save you money on your premiums, allowing you to at least partially recapture that initial cost.

The types and levels of coverage you choose to purchase for your car also has a tremendous effect on the policy pricing. For example, a simple 15/30/5 auto liability policy (the legal minimum for coverage in PA) will be very inexpensive next to a plan including extras like comprehensive, collision, and uninsured/underinsured motorist coverage. The coverage decisions you make as a policy holder greatly impact the rates you pay for coverage. This is something to keep in mind as you put together prices for your Pennsylvania auto policy. Higher deductibles are an alternative to reduced coverage to keep prices low.

Additional Pricing Variables to Consider

Your driving history and the presence or absence of accidents and citations are obviously important in determining your rates. The car you drive is also paramount in importance. It is smart to get auto insurance quotes for a new car before making a purchase. But there are other factors you need to keep in mind as a Pennsylvania driver.

For example, your credit rating and credit history can have a very broad impact on your policy and the way your provider prices out coverage on your behalf. An excellent credit history will enhance your ability to get into a better classification of coverage. With a great credit score (along with a strong history of safe driving), you have a much better chance of getting into a preferred policy. This can save you quite a bit of money on your Pennsylvania coverage.

On the other hand, a poor credit score and checkered credit history do nothing but harm your ability to find affordable coverage for your automobile. Auto insurers have extensively studied the connection between poor credit scores and high rates of auto insurance claims and other risk factors, and have consistently seen the same pattern: a strong positive correlation between poor credit and high rates of claims (and a corollary connection between good credit and low claims rates). With so much importance attached to a strong credit rating-and your auto insurance rates are just one example among many in which this score comes into play-it is critical for you to make wise choices as a Pennsylvania consumer and to take good care of your credit.

Auto policies are determined by a wide range of factors. We have discussed some of the major ones, but do not intimate this list to be exhaustive. Being aware of these factors empowers you to better understand the auto insurance market.

 

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