Global Courant
The cost of auto insurance premiums varies significantly from vehicle to vehicle and person to person. In fact, there are many factors that affect the premium you pay for your auto insurance policy.
The risk of an accident therefore has a major impact on the insurance premium. The higher the risk, the more you have to pay for insurance coverage.
Factors:
1. Age: Statistics show that younger people have a higher risk of being involved in an accident compared to older people. In general, drivers between the ages of 50 and 65 are considered safe drivers.
2. Sex: Women are considered to make fewer claims than men and are considered safe drivers.
3. Driving history: Usually, people with a clean driving record attract lower car insurance premiums.
4. Driver Geography: Your home address also makes a difference in the premium of the car insurance. People living in less traffic areas are expected to spend less on auto insurance compared to people living in high traffic urban areas. Auto insurance premiums vary from ZIP code to ZIP code, depending on the number of auto thefts in the area. If you live in a high-risk area, your insurance premiums are expected to be higher.
5. Car brand: Luxury and powerful cars are usually expensive and often stolen. Therefore, it can be more expensive to insure. On the contrary, a cheap car costs less to insure.
6. Driving Violations: Having an accident record puts you at a higher risk and so your car insurance premium will be relatively higher. You can be penalized by the auto insurance company for up to five years from the date of the accident. However, your premium will decrease as your driving records improve.
7. Credit rating: If you have a bad credit history, the auto insurance company will charge you a higher premium amount. You can work on your credit to get a better score. This way you save on your premium.
8. Parking spot: Your car insurance premium is greatly influenced by where you park your car. If your car is protected against theft and damage, the premium is low. So make sure you park the car in your garage and have a car alarm or a tracking device to pay less premium.
9. Annual mileage: The auto insurance company also calculates your vehicle’s annual mileage. This is because the vehicle’s annual mileage gives the insurer an idea of the risk level of an accident. This can affect your car premium to some extent.
Basically, before finalizing auto insurance, make sure you compare the rates offered by different local auto insurance companies to get the best deal in auto insurance. You can take full advantage of these factors and work on lowering your car insurance rates.
Factors that affect auto insurance premiums
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