Personal Factors that Affect Maryland Car Insurance Rates
Some people are not aware that not all factors that affect Maryland car insurance premiums are dependent on the car’s make, model, and year; personal circumstances may also have something to do with how expensive or how cheap your premium turns out to be.
Following are some personal factors that may affect the cost of your automobile insurance coverage:
Your Preferred Coverage
Simply put, the less coverage and features you opt to have, and the bigger amount of deductible you have, the less Maryland car insurance premium you will be required to pay.
How You Drive
Your ticket and accident history, as well as the average distance you drive on a yearly basis contribute to the cost of your car insurance. If you have a clean driving record – meaning you have minimal or no violations and accidents – Maryland car insurance providers will see you as a low risk driver who is less likely to file claims; thus, you will be assessed with a lower insurance premium.
The Vehicle You Drive
The Insurance Information Institute says that the car’s price tag and the possible repair costs determine, in part, how much insurance premium you have to pay. The likelihood of theft and the vehicle’s overall safety record are likewise factors.
To illustrate, the cost to fix a secondhand Nissan Altima that costs around $17,000 will likely be a lot cheaper than repairing a brand new Ferrari 458 Italia worth $225,000. Expect the difference to be reflected on the Maryland car insurance rates.
Your Personal Circumstances
Pertinent personal information such as your occupation, place of residence, and age are taken into consideration when computing for your automobile insurance premium. This is because insurance coverage providers base their rates on actuarial data about you. They study the claim patterns and trends among people with similar personal information.
For example, a forty-something driver is more likely to pay a lower rate than a teen-age male driver simply because statistically, a middle-aged individual is less likely to figure in a road mishap than a teen-aged boy. Your job may also be a factor if it affects the amount of driving you do. If your work requires you to log a lot of miles on the road as a sales agent, you may be assessed with a higher premium since the longer hours you spend on the road puts you at more risk of accidents. Where you live also matters as local incidents of car theft, road accidents in the vicinity, and related lawsuits are also tracked.
Your Current Credit Rating
There are insurance companies that consider credit scores in computing their rates. A lot of people are against this practice, and some states have already established regulations on the use of credit rating for insurance purposes. The logic behind using insurance rates on credit scores are based on actuarial studies proving that the size and number of insurance claims an individual may file is linked to how he manages his financial affairs.
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