There are many factors that affect your car insurance premium. Each is a statistically based risk for a specific population. The higher the risk associated with a person, the more he or she is likely to pay for coverage. We have elaborated on some of the risk factors below, but there are numerous others, including driver's gender, miles driven per year, purpose for using the vehicle (commuting to work, using for work, leisure only), etc. Factors you cannot easily change that affect your car insurance rates: * Your Age Statistically, drivers under the age of 25 are at greater risk of being in an accident than those over age 25. Drivers between the ages of 50 and 65 generally have the safest records. * Your Gender Women are statistically safer drivers (sorry guys). * Your Marital Status A married person will pay less than a single person with an identical driving record. Factors you CAN change that affect your car insurance rates * Your Location Where you live and work makes a difference. Folks living in certain areas with little or no traffic are likely to spend less on insurance than those living in congested cities or suburbs because areas with a lot of traffic tend to see more accidents. Some neighborhoods also have a higher rate of vehicle thefts, which can result in a higher premium. * Your Driving Violations Having an accident or moving violations on your record (speeding tickets, DWI, reckless driving, etc.) put you at a higher risk for accidents and will likely mean a higher premium. Some insurance companies will penalize you for your record for as many as five years from when the incident occurred. However, keep in mind, as your record improves, your premium will get lower. * Your Vehicle Type A cheap car will cost less to insure than that status symbol SUV sitting on 24" rims. * Your Accident Claims A driving record that is clean and free of accidents will hold fare better for you than lots of tickets and/or accidents. * Your Credit History Many insurance companies view having a poor, or even no credit history as suggestive of higher risk and thus, charge you a higher premium. * Your Occupation Insurers have statistically found a correlation between your occupation and risk of filing claims. For instance, a newspaper delivery person is most likely a higher risk than the personal banker sitting at their desk all day. Other factors that help determine car insurance premiums: * Driving distance to work * Miles driven annually * Years of driving experience * Rather or not you have taken safe driving courses * Business use of the vehicle * Whether or not you currently have car insurance * Theft protection devices (often results in discounts) * Multiple cars and drivers (another opportunity for discounts) What can I do right now to make sure I have the car insurance lowest premium? Shop around and compare car insurance quotes from different insurers. They base their premiums on their claims experiences, which naturally differ. One company may see your area as a higher risk than others may. Another may charge more because of your occupation. Shopping online makes it easier because you can quickly see multiple companies and their rates for your particular situation. |
