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Dispelling Auto Insurance Myths - My Driving Record Determines My Auto Insurance Rate

  

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There’s a lot more to your auto insurance rate than just your driving record.  Auto insurance premiums are based on a large number of factors, some of which you can control, and some of which are just the facts of life.  Factors determining your Massachusetts auto insurance premium include: 

• Age - Statistically, drivers under the age of 25 are at greater risk of being in an accident than those over age 25. Drivers between the ages of 50 and 65 generally have the safest records.
• Gender - Women are statistically safer drivers than men.
• Marital Status - As biased as it may sound, married drivers pay less for their auto insurance rates per person than single drivers do.
• Type of Vehicle - Insurance companies charge higher rates for automobiles classified as intermediate-performance, high-performance, and sports vehicles, and for rear-engine models.  Some state even rate four-door cars differently from two-door models.
• Geography – Where you live matters.  If you reside in an urban area, the rate of your insurance premium is likely to go up. This is because, in a city, there is higher risk of accident and theft. On the other hand, if you live in a remote area, the probability of theft is lower. Consequently, your insurance premium would not cost as much.
• Driving Violations - Moving violations (such as speeding tickets or running red lights) and accidents tend to mean that you’re more likely to have an accident in the future. As you improve your record over time, however, your auto insurance premium will go down.
• Prior claims - If you have frequent accident claims, you’ll pay a higher premium.

Other factors that go into determining premiums: 

• Miles driven per year
• Distance to work
• Years of driving experience
• Business use of the vehicle
• Whether or not you currently have auto insurance
• Theft protection devices (often results in discounts)
• Multiple cars and drivers (another opportunity for discounts)

It can be more than a bit confusing when trying to decide on the best and most affordable coverage for your vehicle.  As a Massachusetts independent insurance agent, Gaudette Insurance Agency can work with you to provide the best options for your situation.