Getting car insurance is a tedious process. This is especially true because you are unlikely to get the same rate from different insurers. Our credit counseling advice is to understand the several factors that impact your car insurance. Getting the right deal is crucial for your overall money management strategies.
ACCC has the scoop on factors that impact your car insurance.
Factors that Impact Your Car Insurance
The factors that impact your car insurance are not always under your control. The most basic factors that impact your rates are your gender, age, marital status, and driving record. Let’s dig a little deeper to find more factors that influence your car insurance.
The Type of Car You Drive
The value of your car is a key determinant of the rate of your car insurance. In addition to the value, things like the safety rating of your car, it’s size and age can also come into play when it comes to the insurance rate. Other factors that impact your car insurance may include your engine horsepower. Given all of this, it’s always wise to call for insurance quotes before you make your final purchase decision.
Your Credit Status
As much as your auto loan rate depends on the health of your credit, your insurance rate also may vary greatly depending on your credit status. The good news is you have control over this factor. Therefore, settling credit card debt on time takes precedence over anything else if you are serious about getting a good rate.
The Nature of Your Commute
The driving record is one of the key factors that impacts your car insurance. The distance of your commute impacts it greatly. The farther you have to drive, the higher the risk for the insurance company. Where you live and where you park your car can also come into play when determining a rate.
If you’re struggling to pay off debt, ACCC can help. Sign up for a free credit counseling session with us today.
