Just get a new ride or looking for a new policy? When shopping for car insurance, the temptation to get the lowest rate possible often results in less than optimal coverage. But if you are shopping for the best rate possible, there are other factors to know that impact your insurance premium. 

Demographic Factors

  1. Age and Gender

Young men typically have higher premiums than young women, as statistically, more male teenagers have accidents than female teenagers. On the other end, some evidence suggests older women have more minor accidents than older men, but the difference in premiums typically isn’t drastic.

  1. Where You Live

More densely populated neighborhoods and cities means more opportunities for accidents. And since most traffic accidents occur close to home, the area in which you live greatly affects your rates. Additionally, repairing your car may cost more in some areas, some areas have higher rates of car theft, and high rates of unemployment resulting in uninsured cars are all taken into account of where you live and how it affects your car insurance rates. 

  1. Profession

What you do for a living can also affect your insurance premium. Many insurance companies analyze your risk of an accident based on your occupation. Jobs that require more travel, such as delivery drivers or home-repair person, have a higher risk of getting in an accident. Additionally, jobs such as police officers or nurses are known to be more cautious drivers.

Vehicle-Related Factors

  1. Age of the Car

Newer cars generally have higher collision coverage rates than older vehicles, since the cost to replace a new car costs more than an older one, and therefore aren’t likely to be “totaled” as often. Even though the cost to repair an older car is similar to the costs to replace a newer one, older cars are more likely to be “totaled” in an accident. Because of this, the owner is more likely to discard the totaled vehicle and replace it than pay for the cost to repair it. 

  1. Vehicle Size

As larger cars are generally safer than smaller cars, they usually have a lower premium. A large vehicle with a high safety rating will typically have a lower premium than a smaller car with a similar rating. But engine size also factors in. For instance, a sports car with a V8 engine costs much more to insure than a small car with a V4 engine.

  1. Safety Rating

Owning a vehicle with a high safety rating typically results in a lower premium, as there is a low chance of needing to pay for your or your passenger’s medical bills in the event of an accident. Owning a vehicle with a lower safety rating usually means a higher insurance premium.

COVID-19 Impact on Car Insurance

While the coronavirus won’t impact your insurance rates, you may have some questions regarding how this impacts your car insurance policy – especially if you aren’t driving as much, or at all – staying at home. 

Many offices in the Omaha area have transitioned to working from home, meaning there is less traffic on the streets and less of a need to drive places. Even if you are only driving your vehicle to the grocery store once a week, you still need car insurance. Even if your car is sitting in your driveway or garage, insurance coverage can protect you from break-ins and storm damage, so it is advised not to cancel your policy even if you aren’t driving anywhere. We understand this is a novel time with a lot of uncertainty, and we want to make sure you feel comfortable with your insurance policy. We are here for you if you have any questions.