Reader’s Question:

I’ve heard that there are some ‘hidden factors’ that insurance companies check when they charge premiums for a van auto insurance policy. Are there particular factors that affect the costs of van motor insurance in Florida?

Tim

Orlando, FL

The main determinants for both car and van motor insurance in Florida, or anywhere else in the U.S. for that matter, are usually driver history, car model and choice of coverage. However, what you’ve heard is actually true: there are some, less well-known factors that insurance companies take into consideration when computing policy premiums:

• Credit Rating
The logic behind this is that your credit history is a sign of your responsibility. If you can maintain a good credit history, it shows that you’re responsible behind the wheel and that you’re less likely to get into an accident. If you have a not-so-good credit history, they will assume that it will affect your driving skills adversely. So maintain a good credit history if you’re browsing for van motor insurance policies.

• Safety Rating
Each car has a safety rating from “A” to “E”, with safer vehicles rated “A” and riskier vehicles rated “E.” The lower the safety rating of your car, the higher the insurance premium you’re going to have to pay. So try and find a car with a high safety rating. If you’re using a van, check if there are electronic stabilizer systems to significantly increase your van’s safety rating.

• Job Stability
With the effects of the financial crisis shedding jobs left and right, it’s important that you’re able to prove you’re stable with your job. Do that, and you’ll be able to negotiate for lower policy premiums by proving your ability to keep paying.