Your auto insurance premium is based on statistics and probability, which are determined by your decisions. But which decisions can impact your auto insurance?
Auto insurance premiums can always seem like they are out to get you. But the fact is that these premiums are based on past decisions and incidents. Auto insurance companies use statistics in order to ascertain your risk. A higher-risk customer pays more for insurance because their odds of filing a claim are greater than that of a person who is a low-risk customer. Do you know which decisions can greatly impact your auto insurance premium?
Zip Code of Residence
Every zip code has a different crime rate. The difference between any two could be infinitesimal–hardly worth nothing–or it could be drastic. Your risk of filing a theft or vandalism claim is greater in a neighborhood that has a high crime rate. That means, if you move to a new zip code, you should expect your premium to be affected.
Auto Make & Model
You may think that a car is just a car. There are, however, some cars that offer some safety features that others do not. These safety features can reduce the chance of an injury claim, thus, lowering your risk in the eyes of your auto insurance company. There may also be some parts that are more expensive to replace in one model over another, auto insurance companies take this into account, too.
Driving History
History tends to repeat itself. If your driving record shows that you have been anything but a stellar driver, your risk to file a claim is higher than it otherwise would be.
Contact Risk Management LLC in Brookfield, Wisconsin for all of your auto insurance needs. No matter your risk, you need an auto insurance policy to financially protect yourself when an accident occurs.
