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Which of the following affects one’s car insurance premium

Which of the following affects one’s car insurance premium? Automobile insurance is an expense that most people have to consider, and with the marketplace providing a wide range of carriers who offer varying coverage levels and premiums, it can seem like a daunting task. But this article breaks down what the different factors are that could affect your premium and why they do so.

What is a Driving Record?

A driving record is a compilation of your driving history. It includes your driving record from state governments as well as any traffic offenses that may have been committed. Driving records can affect your car insurance premium. The severity of the offense and how many points you have on your record can impact your premium.

Factors Affecting Your Insurance Premium

-Your driving record
-Your credit score
-Your age
-Your location

How to Improve Your Driving Record

If you have had a CDL or equivalent license for at least 3 years, your rates will go down. You can also make a claim and your rates will go way down. If you have had a CDL or equivalent license for less than 3 years, your rates will go up.

You can improve your driving record by getting points off of your record. Points are given for things like speeding, following too closely, etc. Once you have amassed a certain number of points, your rates will go down. In addition to getting points off of your record, you can also take defensive driving courses to earn points off of your record. There are many different ways to improve your driving record and get lower rates on car insurance.

Why Get a Deductible?

When shopping for car insurance, one of the most important factors to consider is the deductible. Understanding what a deductible is and why you may want to have one can help you save money on your policy.

A deductible is simply a fee that you pay before your insurance company begins to pay for damages caused by an accident. The higher the deductible, the less your insurance company will pay out in claims before it starts charging you premiums.

There are a few reasons why you may want to purchase a higher deductible. For example, if you have a low auto liability policy, having a high deductible could lower your premiums by increasing the amount of coverage you have. Additionally, having a higher deductible could protect your financial security if you were to file a claim and receive a large payout.

However, there are also several disadvantages to buying a high deductible. First, it can be difficult to determine the cost of repairs should an accident occur since this amount would be covered by the deductible already. Second, if an unforeseen event occurs and your vehicle requires extensive repairs, your premium may increase significantly because your deductible was not high enough to cover these costs. Finally, should you choose to file a claim after an accident


There are a few factors that affect one’s car insurance premium, but the ones that typically have the biggest impact are your driving record, your car’s characteristics, and where you live. The more points you have on your license and the worse your record is for accidents (based on claims made), the higher your premium will be. If you live in a high-risk area or have a particularly dangerous car, your premium may also be higher. As with most things related to insurance, it pays to do your research and shop around to find the best rates for you and your vehicle.

which of the following statements is true about auto insurance premiums?

A car with a higher value will typically result in a higher auto insurance premium.

False. Car insurance premiums are based on a number of factors, including the age and make of the vehicle, your driving record, and where you live.

Periodic payments for car insurance are known as

periodic payments for car insurance.

The formula for calculating annual insurance premiums is

Your age x your state’s population density x your risk factor

The following factors can affect one’s car insurance premium:

-Age: Old drivers are typically charged more than young drivers.
-Gender: Females are typically charged more than males.

-Lifetime driving history: A driver with a clean record is usually less likely to be charged more for car insurance.
-Location: A driver in a high-risk area will pay more for car insurance than a driver in a low-risk area.

Which of the following does not affect your property insurance premium

-The make and model of your car
-The age of your car
-The type of car you drive

Does the type of car affect insurance rates

One’s car insurance premium is affected by a variety of factors, including the type of car. Cars that are considered high-risk vehicles typically have higher premiums than those that are considered less risky.

How can you decrease your insurance rates

There are a few things that you can do to try and lower your car insurance rates.

1) Drive defensively. This means avoiding accidents, maintaining good communication with your insurer, and following the rules of the road.

2) Review your policy regularly. Make sure you are up to date on all the changes that have occurred since your last policy renewal.

3) Use a car insurance comparison website. This will allow you to compare rates from several different insurers and find the best deal for you.

List four factors that can change your insurance premium

-Your driving record
-The type of car you drive
-Your credit score
-The age of your vehicle

What factors determine your insurance premium

There are many factors that determine your car insurance premium, but here are a few of the more important ones.

Your age

Your driving record

The make and model of your car

The state you live in

Your zip code

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