Reader’s Question:

Hello, Im just want to know if a person will get higher car insurance premium if she never had any insurance policy before? Is there any discounts for those who any insurance before?

Beth

Portland, ME

Car insurance first time buyers are likely to be charged a higher premium than a driver who has had car insurance for many years. The reason for this is because of the discount for renewing with the same insurance provider. Many insurers will extend policyholders a renewal discount if they are able to provide proof of prior insurance coverage.

There are still a lot of factors like the amount of time you have been licensed that will affect your car insurance rates. For instance, an individual that is an inexperienced driver and is purchasing car insurance for the first time will normally pay more than an experienced long time licensed motorist that has been under other insurance policy and is now purchasing their own auto insurance policy.

Insurers in most states are allowed to use a lot of factors to determine the customer’s premium rate. The cost of car insurance for different drivers differ, as the level of risk for the insurance provider varies.