How is your New Hampshire Auto Insurance Premium Determined?

Auto insurance in New Hampshire can take on an almost sinister role when you actually stop and compare your own coverage with other road users in the same state. Have you ever wondered why a friend or work colleague enjoys cheap auto insurance rates while you’re still paying through the nose for your own policy? Most auto insurance companies use a predefined set of calculations that establish the type of risk you present and the cost of coverage will usually be influenced by these methods.

Your auto insurance company will essentially provide a premium based on the level of risk associated with insuring you and your vehicle. If, for example, your auto insurance company looks at 5,000 different motorists involved in road traffic accidents, they may find that 75% of these individuals had also made previous claims or had multiple traffic violations. This highlights high-risk groups and your carrier will inevitably increase your auto insurance rates if you fall into one of these categories.

Which Factors are Considered?

There are many different factors that your auto insurance carrier will consider before a premium is eventually offered. The following list highlights just some of the influential areas that place motorists into high-risk groups:

Gender – Male drivers are usually subject to higher auto insurance rates than their female counterparts. Historically, male drivers tend to be involved in high-impact accidents which occur at greater speeds. This inevitably leads to higher repair costs and auto insurance companies will write this level of risk into their policies. Women usually drive over shorter distances and often have children in the vehicle. This promotes a defensive driving mentality and even if they are involved in an accident, collisions tend to be low-impact and only result in minor vehicle damage.

Marital Status – Statistically, married motorists adopt a more conservative driving attitude in comparison to their unmarried counterparts. The extra responsibilities that marriage can bring has a definite impact on driving habits and it should come as no surprise that single drivers tend to be involved in a higher percentage of accidents and traffic violation offences.

Previous Incidents – Motorists who have previous convictions on their driving records will find it all but impossible to obtain cheap auto insurance quotes from most carriers. Roads users with DUI or DWI offences against their names are amongst the highest risk group of drivers. Even motorists with multiple auto insurance claims or moving violations will be severely treated by most leading carriers.

Location – Location has a massive effect on auto insurance rates although California has recently outlawed the use of ZIP codes as a means of determining premiums. If a motorist lives in an urban area, the chances of being involved in a road traffic accident are increased because of the higher volume of vehicles on the road. Furthermore, urban areas also tend to have higher crime rates and this makes a vehicle more vulnerable to theft or vandalism. Most auto insurance quotes will usually reflect these risks.

Coverage History – If a motorist has little in the way of a coverage history, an auto insurance company will be unfamiliar with their potential to pay premiums on time and this can increase auto insurance rates significantly. Also, any motorist who has been reported for previously suffering a lapse in coverage will also be subject to expensive auto insurance quotes.

Experience – Experience is a factor which most carriers will consider before offering auto insurance quotes. The less time an individual has spent on the roads of New Hampshire, the greater the chance that their relative inexperience will lead them into an accident situation.

Overseas Driving License – If a road user has a foreign driving license, auto insurance rates could rise accordingly because the carrier will have less background knowledge of the depth of skills needed to pass a driving test in a different country. Although this problem can be overridden by taking the appropriate test in New Hampshire, auto insurance quotes will be higher while an overseas license is in place.

Vehicle Use – While most vehicles in New Hampshire are used for social or domestic purposes, a higher premium will be applied to all auto insurance quotes where a vehicle is used for commercial or other working purposes. Although commuting to work will only make a difference to auto insurance quotes in relation to estimated mileage, the transport of goods, stock or any other commodity will attract significantly higher rates.

Age – Age continues to be one of the most determining factors in high-cost auto insurance rates. On a statistical basis, young drivers are more likely to be involved in a road traffic accident because of their inexperience and casual outlook to life. In turn, young male drivers, who are involved in more accidents than any other group, will attract even higher auto insurance quotes than young female drivers.

Choice of Car – The type of vehicle that a motorist uses will have a definite effect on all auto insurance quotes. An older, conservative family model will attract cheaper auto insurance rates than a newer vehicle with higher levels of performance. If a vehicle falls into any of the following categories, auto insurance quotes will usually be more expensive:

  • Sports car
  • Luxury car
  • High-value car
  • Foreign car
  • Salvage vehicle
  • Cars with fitted kits
  • Replica cars
  • Exotic cars
  • Experimental vehicles
  • Modified cars
  • Commercial vehicles
  • Cars with high-performance engines

Credit Scores – An increasing number of auto insurance companies are using credit scoring as a means of establishing premiums. If a motorist has a poor payment record on other credit commitments, auto insurance quotes will rise and the road user may lose the option to pay for the policy on weekly or monthly terms.

Lowering your Auto Insurance Rates

Although it is almost impossible to avoid certain areas of risk on an initial basis, road users in New Hampshire can actually take preventative measures to avoid being penalized too heavily. Maintaining a safe driving history is usually the most significant step in lowering auto insurance rates so conscientious vehicle use over a three year period is highly recommended.

Take a defensive driving course and your auto insurance carrier will be delighted with this new-found air of responsibility! This is particularly relative to young drivers who usually have to go a few steps further to secure cheap auto insurance quotes. Obtain a record of your credit history and make sure all entries are accurate and up-to-date. If any debts on your file have already been settled, make sure they are removed by providing proof of payment and make a concerted effort to clear or manage other negative listings.

Shopping Online for Maximum Discounts

Most auto insurance carriers now apply additional discounts if a policy is purchased online and road users in New Hampshire can expect to save approximately 10% on all policies purchased over the internet. At Promiga Auto Insurance Quotes, all of our top-rated carriers have enjoyed excellent consumer reviews and are experienced in treating all policy applications on individual merit.

Because we understand just how big a commitment auto insurance can be, Promiga only offer free auto insurance quotes and there are never any fees or commissions chargeable for our services. Every single quote is offered on an obligation-free basis and we never take sensitive personal information and pass it on to third party companies. With just a New Hampshire ZIP code, an entire world of competitively-price online auto insurance quotes can be found in just a few short minutes.

Similar Posts