Well, first off it’s not personal. It may feel that way, but it’s not. What it is, is a matter of statistics. If you’ve been labeled an insurance risk there are many factors, mostly related to past experiences. However, sometimes risk is assigned without a history, like teenage drivers for instance.
What are the risks insurance companies look at?
Age – Young drivers are a risk merely due to their inexperience. As you get older and prove yourself with a clean driving record, your insurance rates will decline. For many insurance companies 25 is the benchmark for significant premium reductions.
Driving record – If you have a lot of speeding tickets (or other driving violations), it can affect your insurance costs. Play it safe and drive smart…it will save you money in the long run.
Insurance claims – Even if you obey the speed limits and don’t drive recklessly, you may have a number of accidents on your record. That adds up.
Credit history – Bad credit could make you an insurance risk. It’s not a single factor, but if you have a bad driving record and bad credit, you may be labeled as high risk due to a lack of overall responsibility. Insurance companies love stable, responsible customers and they are rewarded with lower costs.
To learn more about insurance and the risk factors, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.