MINT HILL, NC – Q: Why do my friend and I pay different amounts for car insurance?
A: Most insurance companies look at a number of factors to calculate the cost of your car insurance.
These include:
Your policy and deductibles
Generally, choosing a higher deductible means a lower monthly payment.
What you drive
Some insurers increase premiums for cars more susceptible to damage, occupant injury or theft.Â
How often and far you drive
The more miles you drive in a year, the higher the chances of a collision — regardless of how safe a driver you are.
Usage-based car insurance like Drive Safe and Save™ by State Farm® might save you money when you drive less.
Where you live
Generally, due to higher rates of vandalism, theft, and collisions, urban drivers pay more for car insurance.
Your driving record
Drivers who cause accidents generally pay more. If you are insured and accident-free for 3 years, you likely qualify for a State Farm accident-free savings.
Your credit history
Certain credit information can be predictive of future insurance claims. Maintaining good credit may have a positive impact on your car insurance costs.
Your age, sex, and marital status
Collision rates are higher for drivers under age 25, especially single males. Insurance prices in most states reflect these differences.
Have further questions? I’d love to answer them! Feel free to call or text my office at (704) 526-0887 or visit us in person at 9539 Idlewild Road or online at MyMintHillAgent.com.
