Factors That Can Impact Your Auto Insurance Rates
There are many factors taken into consideration when an insurance company provides you with a quote. The make and model of your vehicle can significantly impact your rates. Other contributing factors are your age, your credit history (just can’t seem to get away from that no matter what aspect of life you are dealing with), your driving record and your demographic location. If you live in what is considered a ‘high-risk’ area, this would impact your rates negatively causing an increase. Just like being on the road more often increases your chance of being involved in a motor vehicle accident, residing in a high-crime area will increase your chance of becoming a statistic. It is unfair, but an unfortunate fact of life.
When it comes to age there are two groups that are considered high-risk drivers: teenagers and those over the age of 65. It is a fact that new drivers don’t have the experience of their older counterparts and are more likely to be an accident due to that inexperience, lack of attention and alertness due to distractions. In the case of the senior citizen, a natural side effect of aging is a decrease in motor skill dexterity, response time, vision and hearing. In fact, under the age of 25, the insurance premiums are much higher than the 25 and older groups. Conversations by the operator of the vehicle with passengers, changing the CD or radio….all it takes is a few seconds of inattention for tragedy to strike.
Overall, the majority of Colorado auto insurance companies use the criteria aforementioned of age, make and model, demographics, credit history and driving record. But they in addition to those factors also take the costs of insurance all Colorado drivers and divvy up the costs including any lawsuits, settlements and other legal costs.
Many drivers would appreciate assistance in setting car insurance limits that are cost-effective and safe. You don’t want to be one of those drivers who pays too much for insurance but has insufficient coverage or is underinsured. Additional cheap auto insurance beyond minimum mandatory coverage decreases in expense as you purchase more. In particular you want to concentrate on bodily injury liability. When some people have gotten through calculation pain and suffering, medical costs of personal injury and lost wages it has gotten into the hundreds of thousands of dollars in a serious accident. Be smart. Protect yourself from losing your shirt in the event of a serious accident.
There is a difference between minimum, which would be the least amount by State law that you can be financially liable for and standard, which reflects the average amount for an automobile livability policy. The standard is $100,000/$300,000, the $300,000 for total bodily injury liability for all parties injured in a single accident. It is recommended that $300,000 to $500,000 be taken for personal injury liability even if that means less property damage coverage. Property damage in a comparison to personal injuries would be less expensive so it makes sense. Better safe than sorry.