This time of year is celebrated by many with Easter. For some it is a time of new beginnings. For others it is a time of reflection of forgiveness and defeat of sin that allows man to have a relationship with his Creator God. In either case, the theme of grace and mercy are pushed to the forefront. Central to the Easter message is opportunity for a clean start in which the past failures do not impact the future steps.
If auto insurance companies operated on the same principle, all would be much happier. The dream is that car insurance companies would forgive and forget who you are and what you have done. While Jesus Christ assumes your sin and provides salvation, insurance companies keep a record of your deeds and charge you accordingly. We certainly prefer grace over fairness.
In order to be fair to all, auto insurance premiums are determined by several risk factors. These risk factors combine to identify which class risk drivers belong. The choices made and the way people are made impact your cost of insurance. The first choice that determines your premium is what type of car you drive. The make, model, year, and value of the car are considered. Newer more valuable cars require higher premiums. The second choice made impacting insurance costs is how the automobile is driven. Driving records are pulled on each insured driver. Poor driving records will increase the amount a driver must pay to secure insurance. Where you choose to live will influence your rate. High traffic areas raise premiums. Finally, the type of coverage you choose determines cost of insurance. Comprehensive and Collision insurance covers more but cost more. Liability insurance covers less and costs less.
Other factors have nothing to do with choices made, but who the driver is. The age of a driver will change the premium. Older drivers are considered more reliable and less of a risk. Whether a driver is male or female can impact what a person pays. Typically, females are deemed less aggressive and pay less for insurance. Marital status factors into insurance costs. Married people are statistically safer drivers than single people.
There are no new starts in auto insurance. While everyone demands fairness, they would prefer grace. Fairness can be costly! In the insurance business, who you are and what you choose determines what you pay. Unlike the sacrifice of Christ for sins on the Cross, the coverage they provide comes with a cost you must pay.
Contact your DAEMI AGENT for a fair auto insurance quote!