If you are a customer of Feivor Insurance, you already know that shopping with an independent agent at our office allows you to find highly competitive rates from several of the leading insurance companies in Wisconsin. What you may not know, however, is why car insurance quotes can vary so considerably from one insurer to another. In some cases, quotes for the same coverage can differ by hundreds of dollars per year. So what exactly causes such wide fluctuations? Continue reading to find out.
Your Driving Record
It is a fact: Traffic violations can increase car insurance premiums. Insurance companies typically review driving records for signs of a high-risk driver. Though each insurer uses its discretion when analyzing the data in your driving record, research has shown that a single ticket could result in a rate increase of as much as 22 percent. Of course, certain types of citations may carry more weight than others. A ticket for reckless driving or a DUI, for example, tends to be viewed with greater scrutiny than a seatbelt infraction or a small speeding ticket.
The benefit to having car insurance is being able to make claims that offset your losses. However, the frequency with which you file those claims can have a big impact on the amount you pay for coverage in the future. Insurance companies review your CLUE report for information about past claims you have made – often as far back as five to seven years. It does not matter if the claim was big or small, or if it was paid or denied, insurance companies usually want to know one important thing: How many claims have you filed? The frequency of your claims activity is an indication of how many claims you might file against your car insurance in the future. Too many claims – even for minor damages – could be a red flag to insurers, and it could result in higher premiums.
Your Credit Report
Your finances might be a private matter, but insurers take great interest in your ability to manage debt and credit. Information in your credit report can be used to determine the cost of car insurance. Typically, the better the credit score, the lower the quotes will be. One study even found that a driver with poor credit could pay more than double the premium for the same coverage as a driver with excellent credit.
Besides your driving record, claims history, and credit report, insurance companies, can also consider many other factors when calculating your insurance rates. Examples include:
- Driver age, gender, and marital status
- Whether you are a homeowner
- The make, model, and age of the vehicles on your policy
- The cost insurers will pay to repair or replace your vehicle if it is damaged
- The safety features on your vehicle, such as airbags or anti-theft alarms
- Your annual mileage
- Whether you primarily use your vehicle for business, commuting, or leisure
- Where you live and park your car
- And more
Get a Competitive Rate
If you are in the market for new car insurance, make sure you are shopping with an independent agent here at Feivor Insurance. Even if you have negative factors working against your rates, we can still help you shop and compare quotes from multiple insurers until we find one that is favorable to your individual circumstances. We will work hard to find you great coverage at a competitive price, as well as search for discounts that could further maximize your savings.
Call us today for more information or to request your quotes. We look forward to serving you soon.