My clients some times ask me how to save money on their policies, especially after they have been in a wreck. Here are the factors that companies use to charge you:
Type of vehicle: Statistics show which vehicles tend to be involved in more accidents, suffer more damage, cost more to repair and are more likely to be stolen. Owners of those vehicles, such as sports cars, pay higher premiums.
Age: Drivers younger than 25 have more accidents and pay higher premiums; drivers older than 65 also pay more.
Gender: Male drivers, particularly those who are younger, have more accidents and pay higher premiums.
Marital status: Single drivers have more accidents than married drivers and typically pay higher premiums.
Driving record: Plays an important role in determining premiums; drivers who have had an at-fault accident in the last three years are more likely to have another accident and typically pay higher premiums; also applies to moving traffic violations.
Credit history: Studies have shown that drivers with a poor credit history tend to have more accidents than drivers with a good credit history, so those with a poor credit rating pay higher premiums.
Other factors: Anything that might influence frequency and size of claims. For example, a policyholder who uses his car for business or drives more miles annually has a greater likelihood of having an accident. Similarly, those who live in a small town are less likely to have an accident than those living in a large city.