Factors That Affect Your Car Insurance Premium
by Jon Register
|
Many factors affect the
premium you will pay for
auto insurance. 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: . 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. . Gender Women are statistically safer drivers. . 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 . Geography Where you live makes a difference. Folks living in 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. . 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. . Vehicle Type El cheapo car will cost less to insure than that status symbol SUV sitting on 24" rims baby. . 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. . Credit Rating Many insurance companies view having a poor, or even no credit history as suggestive of higher risk and thus, charge you a higher premium. . Occupation Insurers have statistically found a correlation between your occupation and risk. 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 premiums: . Driving distance to work . Miles driven each year . Years of driving experience . Business use of the vehicle . Whether or not you currently have auto 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 lowest premium? Shop around and compare 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 at http://www.carinsurance.com makes it easier because you can quickly see multiple companies and their rates for your particular situation. Where do I go for quotes? One stop can take care of it all. Go to www.carinsurance.com where you can receive multiple quotes, pick the best price, and then purchase. Get covered immediately on-line or over the phone. It REALLY is the easiest way to purchase car insurance. Visit http://www.carinsurance.com For Your Low Premium Quote About the Author
Jon Register is a
representative of
CarInsurance.com. You can
visit CarInsurance.com at
http://www.carinsurance.com
or contact them at
1-877-327-8728. |
