The cost of car insurance premiums varies significantly from vehicle to vehicle and person to person. In fact, many factors affect the premium that you pay for your auto insurance.
As such, the risk associated with an accident affects the insurance premium largely. The higher the risk, the more you have to pay for the insurance coverage.
1. Age: Statistics show that younger people are at a greater risk of confronting an accident as compared to older people. Generally, drivers between the age of 50 and 65 are considered as safe drivers.
2. Gender: Women are supposed to make fewer claims than men and considered to be safe drivers.
3. Driving History: Usually, people with a clean driving record attract lower car insurance premiums.
4. Driver Geography: Your residing address also makes a difference in car insurance premium. People residing in areas that have less traffic are expected to spend less on auto insurance as compared to people living in urban areas that have massive traffic. Car insurance premiums differ from zip code to zip code, depending on the rate of vehicle thefts in the local area. If you reside in a high-risk area, your insurance premiums are expected to be higher.
5. Car Type: Luxurious and powerful cars are usually expensive and are likely to be stolen. Hence, may cost more to insure. On the contrary, a cheap car will cost less to insure.
6. Driving Violations: If you have an accident record, then you are at a higher risk and thus, your car insurance premium will be comparatively higher. You may be penalized by the auto insurance company for as many as five years from the date of the accident. However, your premium will get lower with the improvement in your driving records.
7. Credit Rating: If you have a poor credit history, then the car insurance company will charge you a higher amount of premium. You can work on your credit rating to get a better score. This will help you to save on your premiums.
8. Car Parking: Your car insurance premium will be greatly affected by the place where you park your car. If your car is secured against theft and damage, the premium will be low. So, make sure to park the car in your garage and have a car alarm or a tracking device to pay less on premium.
9. Annual Mileage: The car insurance company will also estimate the annual mileage of your vehicle. This is because the annual mileage of the vehicle gives the insurer an idea of the level of risk associated with an accident. This can affect your auto premium to some extent.
To sum up, before finalizing auto insurance, make sure that you compare the rates offered by various local auto insurance providers to get the best deal in car insurance. You may take optimum advantage of these factors and work on to lower your auto insurance rates.
Source by Anthony V