If you’ve been searching the internet for car insurance rates in Philly, you’ve likely wondered how these rates are determined. There are plenty of online and television ads that claim you can save hundreds of dollars by switching to various providers, but how is this possible? Knowing how your rates are determined could help you in not only selecting the right insurance provider, but getting the best price possible on your monthly premium. Below are a few of the most common factors used to consider how much you should pay for car insurance.
Coverage Options
At the top of the list in factors determining insurance rates are the coverage options that you’ve selected. The price will vary greatly depending upon the type of policy you’ve chosen (full coverage or liability), the deductible you’re willing to pay, and the limits you have set. Selecting this information will give you a base rate amount for insurance.
Driving Record
One of the most important factors to generating an insurance rate is your driving record. Since insurance policies are designed to offer protection in the event of an accident, they need to first determine the likelihood of you getting into an accident. Therefore, a person who has never been in an accident will pay less per month than a person who has been in several accidents over the past three years.
Gender/Age/Martial Status
As unfair as this may seem, these factors are also taken into consideration when determining an insurance rate. Age coincides with driving experience. A teenager is a higher risk and therefore will pay more than an adult for insurance. Studies have shown that men are more likely to get in accidents than women are, and married couples are less likely to get in accidents than single people are. So if you’re a single man under the age of 25, you’re going to pay more for insurance than a married woman over the age of 25.
These are just a few of the main factors used to determine car insurance rates in Philly. Other considerations might include your credit score, the purpose for the vehicle, and where you live. It is always best to shop around for car insurance to get the best possible rates, however, knowing a bit about what goes into determining those rates could help you save more in the long run.
