What affects the cost of car insurance?
Most people are looking for low-cost car insurance. In many cases, it’s the choices you make about the coverage you want, that determine the cost of your car insurance premium.
Factors that may influence the cost of your auto insurance policy:
- WHO: The characteristics of the person driving the car affect the cost. Age, gender, driving record, and marital status are all factors that influence your premium. Accident rates are higher for all drivers under age 25, especially young males and single males.
- WHAT: The type of car that is being insured affects the cost. A newer, sportier car costs more to insure than an older, more standard vehicle. The more expensive the car, the higher the auto insurance cost.
- WHERE: The geographic location of the car insurance policy is a factor. Due to higher incidences of theft and vandalism in highly populated areas, auto insurance is more expensive than in rural areas.
- WHY: People who use their car for business and long-distance commuting normally pay a higher car insurance premium than those who drive less or for recreational purposes.
- Your driving record: Drivers who cause accidents pay higher car insurance premiums than those who are accident-free for several years.
What can I do to save money on my auto insurance premium?
If you’re shopping for a car, consider how your choice will have an effect on car insurance premiums.
Some insurers increase premiums for cars more susceptible to damage or occupant injury, and lower rates for those that fare better than the norm.
Keep your driving record clean and don’t ever drive while under the influence of drugs or alcohol. A DUI can ruin a person’s record and will make car insurance prices soar. Some car insurance companies will even drop people who get a DUI.
Ask about auto insurance discounts for good students, higher education, insuring more than one vehicle, accident-free driving, and others.