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Factors That Affect Car Insurance Rate

It’s your first time to get car insurance and you’re excited to receive a great deal. You think that this will definitely help you save in the long run; after all, insurances were made so that you may avoid major expenses in injuries, repairs and other property damages. However, there are things that insurance companies are not willing to tell you, one of which is that you may be paying more than what you bargained for. Car insurances have their own equivalent rates and there are factors affecting this rate, hence, you must be aware of these in order to adjust your budget, and hopefully, avoid roadblocks in your savings:

Your address

Your home address would affect your insurance premium in the long run. Of the all the factors that affect car insurance rates, location is chief among them. Insurers would take note of your neighborhood’s crime rates, population, weather patterns, and the severity of claims made annually. This is because they are assessing the risk that your car may be subjected to, and from there, they may be able to analyze the amount or the right package that would be fitting for you and for their business, with the implication that you and your insurer should have a win-win situation deal, even when at times it may seem costly than the average.

Your age

Surprisingly, this is also a major factor when it comes to insurance rates. Your age would reflect the type of premium that you may need, especially if you are young or in your early 20’s. A study from the Insurance Institute for Highway Safety (IIHS) indicates that the fatal crash rate for teen drivers is three times those of drivers over the age of 20. It may be a rough estimate, but that doesn’t stop your insurance company in determining your options. On the other, older drivers tend to be involved in more accidents. People aged around 75 to 80 may have difficulty with their eyesight, hence the statistical result. This also plays an important role in your insurance premiums, which also implies that risk a major factor in your car insurance rates.

How you usually use your vehicle

How you use your ride will also affect your premium. If you use your vehicle for commercial purposes, like for Grab or Uber, you may need to disclose this. Failure to do so could result in a denied claim if you are in an accident while on the job. If you have a long commute or drive frequently after midnight, expect your rate to be a bit higher as the time and longevity of your travel also imposes risk on your vehicle.

After reading all of the determining factors for your car insurance rates, you finally agree to get one. However, you are unsure which is which. No worries as we had got you covered. At Cebuana Lhuillier, we offer the AutoCARE Insurance, a Standard Comprehensive Car Insurance that covers Own Damage (OD), Theft, Loss and/or Damage. Excess Bodily Injury (EBI), Excess Property Damage (EPD), and Acts of God/Nature (AOG/AON). So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy and secure transaction.

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