Car insurance is a contract which protects a car owner from financial loss if an accident occurs. The contract signed between the insurance company and the car owner on payment of the premium makes the company obligated to pay the losses as defined in the policy. Car insurance usually provides liability, cost to repair or replace that car and medical coverage.

The liability coverage makes the insurance company to pay for the driver’s legal responsibility to others for property damage or bodily injury. The cost to repair or replace coverage pays for theft of or damage to the car, while medical coverage pays for the cost of rehabilitation, treating injuries and in some cases, funeral expenses or lost wages. If you think you many be paying too much for your car insurance in Houston, please fill out a free quote and we will optimize your coverage for the best rate possible.

The Car Insurance Premium

The driver is required to pay the premium before the insurance policy is initiated and enforceable in the event of an incident. The amount is dependent a number of factors. Some controllable by the car owner and others not. Some of the five most common things which impact your car insurance premium are discussed here.

Gender and Age

The gender and age of the car owner is a demographic factor that is considered by insurance companies when quoting insurance premiums. Based on statistics, females are less involved in accidents, and are thus seen by insurance companies not to be as high of a risk. Male drivers on the other hand, take more risks, get into more accidents and thus have higher average premiums. A male driver intending to buy a car insurance policy should be prepared to pay more than females.

The age of the driver is another important factor which affects the premium. Younger drivers are believed to be reckless, thus having increased chances of being involved in accidents. Therefore, insurance companies charge higher premium to cover for the higher risk to which the companies are exposed when younger drivers are behind the wheel.

Marital Status

The statistics show that being married reduces your likelyhood of being in an accident and your car insurance premium should reflect that.  This is another factor considered by insurance companies, and it is based in history of claims made by drivers over the years. If your marital recently changed, please call Mattis Insurance Today to get your premium adjusted.  If you are going from single to married, in all likeliness your premium should go down.

Driving History

This is one of the most important factors in determining the cost of your car insurance premium is within the power of the driver to control. A driver who has been involved in many accidents, made car insurance claims previously, or has received any tickets, is of higher risk than a driver with a  “good driving record”. In some cases, insurance companies even refuse to provide insurance coverage with people with driving record that is too bad.

Safety Rating

How safe is your car? Does the car have the necessary manufacturer-installed gadgets which prevent accidents or greatly reduces the chances of the driver and passengers getting injured or even killed in an accident? Insurance companies have safe ratings for cars based on the necessary features installed in the cars and history of claims. Owners of modern cars will pay less premium because the cars have the latest technologies installed. For instance, the model of a car made in 2015 attracts lower premium than that of the same make/model made in 2008, even if the 2008 car is new.

Luxury or Sports Car

Owners of sports cars and luxury vehicles can also expect higher premiums than most other drivers. These automobiles are usually capable of much greater speeds than other vehicles on the road, and some may even have engine and suspension upgrades or aftermarket parts. All of these modification increase the risk of an accident or breakdown, and impact the cost of your premium.

Other Factors

In addition to the five things mentioned above, some other factors which impact car insurance premium are how densely populated the place of residence of the driver is. Accidents occur more in areas which are densely populated.

Credit score: as people with bad credit score usually file claims;

Type of profession: as people with good or respected professions, such as lawyers, law enforcement agents and doctors can get lower premiums.

Other car-related factors which affect the cost of insuring your car are age of the car, likelihood of theft, and the driver’s driving habits. Another thing is the insurance company! Companies have different rates, even for the same type of policy. This is why it is necessary to compare their offers before signing the contract. Call Mattis Insurance Today to get the best car insurance rates in Houston.