Auto Insurance
Many different factors come into play when an insurance agent comes up with a quote for your auto insurance premium. Some factors are within your control; some are not. Understanding which things are given consideration when it comes to quoting auto insurance can help you shop around more effectively.
1. Age Matters
The younger that someone is, the more reckless they are perceived to be by insurers. This is particularly true when it comes to teenagers, who are known to make impulsive decisions when behind the wheel - and who are statistically the most likely age group to be involved in serious accidents.
2. Gender Comes Into Play
Fair or not, your gender will play at least a small role in how much you'll pay for auto insurance. Women have fewer collisions than men, so they tend to pay a bit less as a group. This factor doesn't weigh heavily in determining insurance rates, but it's definitely a consideration.
3. Your Location Counts
Statistics concerning crime - especially robberies and car thefts - play a definite role when it comes to determining how much you will pay for car insurance. If you live in a low-crime area, you'll pay less than someone who lives in an area with higher rates of property crime; such areas are a bigger risk for insurers.
4. The More Infractions You Have, The More You Will Pay
Most states keep track of the number of tickets a driver receives by assigning "points" that then go on their driving record. The more points you have, the more you'll pay to insure yourself; driving lawfully is not only safer, but it can save you money in the long run.
5. Your Claim History Is Considered
Every time you are involved in a car accident - especially one that involves another driver - a claim is filed with each person's insurance companies. Those accidents are usually reported on your driving record, as well. Insurance agencies consider how many claims you've made when determining your rate.
6. Your Driving Experience Is Essential
Age isn't the only thing that auto insurance companies take into account; they also look at how long you've been driving. After all, not everybody starts driving right at age 16. The longer you've been driving, the less you'll generally pay for insurance.
7. How You Use Your Car Affects How Much You'll Pay
When you ask for an auto insurance quote, you have to disclose how you'll be using the car being insured. Depending on whether it's to be used for business, pleasure - or both - will affect your auto insurance rates. A car used strictly for commuting to work will usually cost less to insure.
8. The Training You've Had Matters
Taking an occasional driver's education course is a great way to lower your auto insurance rates. Insurance companies take training and driver's education into consideration when coming up with quotes, so consider taking a course before shopping around.
9. The Type Of Coverage You Need Affects Auto Insurance Rates
Auto insurance is required by law in most states. However, there are many different levels of coverage available. For collision coverage, for instance, the lower your deductible is, the higher your monthly premium will be. Comprehensive coverage - which protects your car under virtually any circumstance - is the most expensive.
10. The Kind Of Car Your Drive Is Important
The sportier the car you drive, the more you're going to have to pay to insure it. Vehicles with high safety ratings - and those that are known for their reliability rather than their speed - tend to cost a great deal less to insure. You might want to think twice about buying that sporty car.
11. How Far You Drive Counts
If you tend to stay close to home - and drive 12,000 miles per year or less - you'll pay a great deal less for your auto insurance than someone who has a very long commute or who otherwise puts a lot of miles on their car each year.
12. Anti-Theft Devices Lower Your Rates
Finally, auto insurers take anti-theft devices into consideration when quoting car insurance policies. Since your car is less likely to be stolen when it has anti-theft devices installed, it's a safer bet for the insurance agency to cover as well.
