How does Car Theft Affect Insurance Premiums?
How does Car Theft Affect Insurance Premiums?: If your question is like; my car has been stolen will my insurance go up? Then let’s discuss all factors about ‘how does car theft affect insurance premiums?’ Your car is a necessity for you as well as it is very valuable too. You purchase it with your hard earned money and you always feel that it should be in good condition and doesn’t get damaged or lost for any reason.
You need to have insurance that can protect you if any accident or damage or loss occurs to it. It pays for damages to the car, property, or bodily injury to you or others provided you have appropriate coverage.
In most States, it is mandatory that you have minimal coverage for your vehicle. The coverages offered are liability coverage, bodily injury coverage, comprehensive coverage, etc. All the coverage is not included in the standard insurance policy, you have to take additional coverage along with the basic policy.
Auto theft is quite common in the United States, United Kingdom, Canada, or any other country. It is not that wealthy people with brand new cars need to worry about auto theft, old cars are also at equal risk. Some of the areas have high crime rates, whereas others have fewer. No matter where you live, there is always some risk of auto theft.
So, let’s check more details on ‘Will Your Auto Insurance Rates Be Affected by Auto Theft?’ You have to consider insuring your vehicle against theft. You need to have comprehensive coverage for protection against theft. Insurance against auto theft will affect your auto insurance premium considerably.
Auto Insurance and Factors Affecting Premium
There are many factors that affect your auto insurance premium in many different ways. Some of the factors that have a significant impact on deciding on premiums are discussed below.
Where you live: It is one of the important factors as insurance premium depends upon the crime rate of your location. If the area where you live has a high rate of vehicle theft, it will increase your premium rate.
Credit Score: When determining your premium rate, most insurance companies take your credit score into account. There is no specific limit to the credit score, but usually less the credit score, the more the premium.
Profession: Many insurance companies correlate your profession and accident risk. It is assumed that professionals who have to travel a lot and are on the road for a longer time, for example, delivery drivers, journalists, etc. are at more risk.
Gender and Age: The studies reveal that young men incur more accidents than young women, whereas old men have less accident rate than old women. Insurance premium rates are affected by gender and age though it doesn’t have much impact.
Vehicle Size: It is observed that larger vehicle is safer compared to small vehicles. However, cars with larger engines relative to the size of the car have higher rates.
Marital Status: Various surveys performed show that married people make fewer accidents compared to single people. Your marital status does affect your insurance premium.
Safety Rating: Vehicles with higher safety ratings are less prone to accidents and as such for these vehicles insurance premium is somewhat less.
Personal Driving Habits: If you have received tickets or have made a claim earlier, it proves that you are more likely to meet accidents. It tends to increase your premium. If your driving record is bad, you might not get insurance at all.
How Auto Insurance Is Related to Auto Theft
One of the important factors in determining auto insurance premium is the crime rate in your area. If the area where you live is highly prone to auto theft, your insurance provider will use the risk statistics and increase your insurance rate. As per the survey made by the FBI, auto theft is the no.1 crime in the U.S. with a record of one vehicle being stolen every 44 seconds with California State having the highest crime rate.
You will have to pay more premiums if you living in an area with a high auto theft crime or if the vehicle you are getting insured is listed as one of the most commonly stolen vehicles.
If you are living in one such high crime rate area and want to get your car protected from vehicle theft, you get auto insurance with comprehensive coverage. Comprehensive coverage pays for your vehicle in case of auto theft or even parts of it get stolen.
When it comes to auto theft coverage, some insurance policies cover only the depreciated value of a stolen car rather than the replacement cost. Moreover, if you have an insurance policy that offers minimal coverage for theft, probably you won’t get paid for the car rental while your claim is being processed.
You have to discuss and understand all the levels of protection with the insurance agent when you buy insurance for your auto. You also study your policy information packet carefully to make sure you understand all the details regarding coverage.
However other factors such as gender, age, driving history, locations, credit score, previous claims, lapses in coverage, etc. also affect your premium, it is difficult to predict exactly what premium you will have to pay.
The best way to make sure that you are offered a fair rate for your coverage is to obtain quotes from several different insurance providers.
Some Other Factors That Help Reducing Insurance Premium
If you are to purchase a car, go for one that has a low theft rate. If you have already a vehicle, you get quotes from different companies and compare for the best possible benefits. Many insurance companies offer additional discounts if you purchase auto insurance as a part of a bundle with your other insurances or as a member of a fraternal group association.
If you get anti-theft auto protection devices installed in your car, you might be offered a discount and it will lower your premium.
To conclude, if you own a car, you have to consider protecting it against theft. As auto theft rates are increasing in the U.S., UK, and Canada or in your country it is recommended that you insure your auto with comprehensive coverage. You cover it from a reliable provider and enjoy your car ride without being worried! Read more articles on lookup.
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- My car has been stolen will my insurance go up or not?
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