In MA, as in every state in the nation, drivers are required by law to insure their vehicles. Much of your insurance rate is determined by the coverage options you choose, but there are several other factors that go into calculating annual premium.
Most people know that black marks on your driving record, such as OUI convictions and speeding tickets, can increase your insurance premiums, but what else factors into your rate?
- Age: Due to a simple lack of experience, young people—from teens to early twenties—pay the highest rates for insurance. These rates can be decreased in a variety of ways, from driver’s education courses to completing a year of incident-free driving.
- Gender: Because males have more moving violations than females—from a statistical standpoint—teen males pay more in insurance premiums than their female counterparts.
- Overall experience: If you are older when you first get your license, you will pay higher rates than if you’d been driving for 10 years or more. Statistically speaking, inexperience leads to more accidents.
- Driving record: Whenever you get a moving violation—whether for speeding, running a red light, or operating under the influence—points will be added to your driving record. Points are bad. They translate to higher insurance premiums and, if you get too many of them, you may lose your license.
- Mileage: If you work close to home and don’t put many miles on your vehicle, you will likely pay less than if you have a long commute.
- Location: Where you live factors heavily into your auto insurance rates. If you live in a highly-populated area, such as a city, your premiums will be higher because of the risk of vandalism and theft.
- The vehicle: Cars that are more expensive to fix or replace will cost more, but helpful features—such as anti-theft devices—may reduce the rate. A Boston auto accident lawyer can help you determine how to proceed if you’ve been injured due to another driver’s negligence.
- Where you park: If you park in a locked garage, your rates will be lower than if you park on a city street, for example.
- Credit score: Most insurance companies use credit scores as an indicator of the likelihood that drivers will file claims. Even if your driving record is perfect, you will probably pay more for insurance if your credit score is poor.