Factors That Affect Car Insurance Premiums

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Factors That Affect Car Insurance Premiums

via FIQ Car Blog by Mitch on 11/21/11

 claims car insurance

When you are shopping for auto insurance, you want to get the best deal possible on your premium. Knowing what affects auto insurance rates and what insurance companies consider risky is the first step to getting a good deal on your policy. There are a few things that you can look at that can help you get a break, and shave money from your budget.
Geographical Location: The place you live will affect how much you pay, as insurance companies look at theft and crime rates in your area. The higher the crime rate, the more your insurance will be.
Driver's Record: The better your driving history, the better your rates will be. If you have had a moving violation or an accident in the past three to five years, you can assume your insurance will be affected by it. A DUI can cause your rates to skyrocket, as well.
Age: A younger driver is statistically more likely to become involved in a vehicle accident, thus making them a higher risk for insurance companies. Insurance rates are usually higher for those under 25 years of age. Teenagers may want to look into taking a driver's safety course, which may get them a discount on their insurance.
Credit Score: Having a poor credit score can cause insurance companies to consider you a higher risk. Keeping your credit rating as high as you can will help keep your insurance costs down.
Safety Features: Having certain safety features on a vehicle can help when looking for discounts on car insurance. Anti-lock brakes, airbags, and anti-theft deterrent systems can all affect your car insurance.
Gender: The gender of a driver can affect car insurance premiums. Statistically, women drive safer than men, so women may see a lower rate in their insurance costs.
Single or Married: Typically, married couples pay less for insurance than those who are single do.
Type of Vehicle: A more expensive vehicle will cost more in repairs if it is involved in an accident, meaning insurance premiums on it will cost more, as well. A less expensive car will be cheaper to insure.
Yearly Mileage: Those who spend a lot of time on the road, due to traveling, their job or other reasons, will likely see their rates increase. Keeping your mileage down will help keep insurance costs down.
Many factors go into the decision of how much an insurance policy will be. Knowing what these factors are is important to anyone looking for a new policy, or who may be looking to change companies.

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