When two best friends compare Pennsylvania car insurance rates and discover one is paying $50, $100 or $200 more than the other is, the friends are confused. Six different reasons can account for this discrepancy in insurance costs. Insurance premiums are based on age, gender, location, automobile, driving record and parking facilities. Only by comparing these closely can the friends decide why one is paying more than the other is.
Of all the age groups, young inexperienced drivers and senior citizens have the most accidents per mile driven and the most serious accidents. One way to reduce insurance costs is to take special driving courses designed to supplement the lack of knowledge of new drivers or re-fresh the driving skills of mature drivers. An insurance agent can advise clients on the different classes and cost benefits. Insurance statistics discovered good students in high school and college have fewer accidents; therefore, drivers with a B or higher average get discounts.
Gender matters at times. Many male drivers in their teens and 20s are more aggressive, drive faster, tailgate and overestimate their ability to handle the speeding vessels they are driving. Later in life, the accident level balances itself. Although men still have more traffic accidents and accidents that are more serious, probably because they drive more, women have more fender benders in parking lots and garages.
The address of the driver determines insurance cost. Even in cities, one area may a higher ratio of accidents, vandalism or burglaries than another does. Insurance companies keep detailed records of everything including accident locations, types of accidents and costs. Because of the distance driven, people living in rural areas usually pay more for insurance than those living in suburbs.
When both people drive the same type of vehicle, it is hard to understand differences in insurance premiums. However, when one person has an economy two door and the other a sports car, this discrepancy is understandable as horsepower makes a difference. Vehicles that protect the driver and passenger with extra air bags, seat belts and antilock brakes are preferred by insurance companies as injuries are reduced.
People who avoid accidents and obey traffic laws are rewarded with good driver discounts. Although the average traffic ticket in the United States only costs $150, insurance companies raise the premium $300 a year for three years. This traffic ticket costs the speeder $1050.
Parking matters. Pennsylvania cars secured in a garage or behind a locked gate are safer from damage and qualify for discounts. It is harder for a car thief to steal these vehicles or a burglar to remove expensive sound systems.
Understanding why two people pay different amounts for automobile insurance can be confusing. Insurance companies use complicated formulas. These insurance providers rate age, gender, address, vehicle, the way people drive and where the car is parked to calculate his or her risk and determine a premium for each driver. Only by comparing these six items can a person decide if the Pennsylvania car insurance premium he or she is paying is reasonable.
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