Have you ever wondered why the cost of car insurance varies so much between different companies? Is it that one insurer is always more expensive than another, or could there be bigger variables at play? The truth is insurance companies use rating systems to calculate how much of a risk a driver is to insure. Each rating system is different and unique to the company that developed it. Drivers are offered coverage at prices directly correlated to the results of their risk assessments.
Always Shop and Compare Rates
Most insurers keep their risk evaluation formulas to themselves. One might put a lot of emphasis on a recent speeding ticket while another might overlook it completely. That, alone, is enough reason to compare rates from multiple companies when shopping for car insurance. We here at Mayville Insurance are proud to work as an independent agency. Rather than be bound to a single insurer, our independent status gives us the luxury of offering you something that is very important – choice. If you have negative factors driving up the cost of your car insurance, we can help you get matched with a carrier that is better suited to your needs and risk profile.
Factors that Affect Car Insurance Premiums
There are many different factors at play when it comes to calculating your car insurance premiums. Insurers may consider all or only some of the following examples when determining your rates:
- Your age, gender, and marital status
- The make, model, and age of the vehicles insured under your policy
- The cost to repair or replace your vehicle after a claim
- The safety features your vehicle is equipped with
- The number of miles you drive your vehicle each year
- The age of the drivers on your policy
- Negative marks on your driving record
- The number of recent car insurance claims you have made
- Where you live and park your car
- And more
Ways to Save
There may be little or nothing you can do about your marital status or age, but there are steps you can take to keep your costs in check. Besides shopping through an independent agent here at Mayville Insurance, you can also consider raising your insurance deductible. A bigger deductible means paying more out of pocket for a claim, but it could also translate to big savings on your premiums. Most importantly, it does not affect the value of your coverage, which is much more important than cost when it comes to car insurance.
You can also discuss any potential discounts you think you may qualify for. Here at Mayville Insurance, we help our customers get many different types of discounts, such as:
- Discounts for completing an approved driver safety course
- Discounts for insuring your home and auto with the same insurer
- Good student discounts
- Low mileage discounts
- Multiple-vehicle discounts
- Claims-free discounts
- Safe driving discounts
- And more
Call us today to find out more about the cost of car insurance or to request your free quotes. We look forward to serving you soon.