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What Affects Your Car Insurance Premium?

Auto insurance is mandatory in most states. However, this does not imply that you’ll need to spend a fortune each time you insure your car. The kind of insurance you have,  your driving history, and even your car parking location address may affect your car insurance premiums. If you are aware of the variables influencing auto insurance, you may be able to buy an affordable auto insurance policy without sacrificing the level of protection.

Factors that affect car insurance rates

You’ll have to pay a premium once your car insurance is in effect to receive coverage.  Here are the factors that affect car insurance rates:

Your policy deductibles

A lower deductible will almost always increase the cost of the auto insurance premium.  The wisest course of action may be to choose a higher premium if you can’t afford to pay a high out of pocket expense (deductible) in case of an auto insurance claim. Discover the best policy within your budget by comparing rates and deductibles when shopping for auto insurance.

What you drive

The year, make and model of your vehicle affects auto premium. Luxury vehicles carry higher premiums because they are costlier to replace in case of theft and repair after an accident. However, vehicles targeted by thieves more frequently or easy to steal also present a higher risk of theft and will consequently have higher insurance premiums.

How often and how far do you drive

Your risk of being in an accident is directly proportional to the time spent driving.  Because of this, most auto insurance providers base insurance premiums on your annual miles. Rates for mileage-based car insurance policies sometimes take either your annual miles or your daily commute into account. Recently insurance companies have introduced telematics programs that will allow drivers who drive lower miles to pay significantly less in their auto insurance premiums.

Your driving records

The better your record, the lesser your premium will be. You may pay more if you have a  history of accidents or other moving violations. The same goes for a new driver without a  history of insurance. New drivers might have to pay more.

Your Insurance Score

Your insurance score, including information in your credit history, may impact your premium. Research has shown a direct correlation between insurance scores and claims frequency.

Your age, sex, and marital status

Furthermore, age has a significant impact on insurance premium. For example,  A teenager, with only few years of driving experience, pays significantly more than a 45 year old married individual.

What are ways to lower car insurance premiums?

According to statistics, women are more likely than men to avoid collisions, experience fewer DWI crashes, and—most importantly—have less serious collisions. As a result, when all other factors are equal, women frequently pay less for auto insurance than males do.

Plus, rates for car insurance are influenced by marital status. According to historical data, married drivers share driving responsibilities and submit fewer individual claims. There is not much of a difference in the cost of auto insurance, however, for married, divorced, single, and widowed drivers.

What are ways to help lower car insurance premiums?

One is to improve your credit score to lower the cost of your auto insurance. Plus, you’ll need to ensure that you pay for only what you need by reviewing your insurance. You can also bundle your auto and house insurance for better discounts. 

Additionally, drivers must keep a favorable driving history, maintain a good insurance score, and compare individualized rates from at least three different auto insurance providers. These actions might significantly reduce the costs of your auto insurance. You can get lower auto insurance premiums by complying with the fore mentioned points. Since auto insurance coverage isn’t cheap, you’ll need to invest time and effort in your research. But if you want to skip doing research by yourself and need a  professional to help lower the car insurance premium, contact Abe GT & Associates.

Over the years, our expert agents have identified various strategies to help you save money. We are licensed insurance providers in Illinois, Michigan, Wisconsin, Indiana,  North Carolina, California, Texas, Arizona, Georgia, Maryland, Virginia, Colorado,  Tennessee, and Ohio; this makes us more than capable of providing you best car insurance products and suggestions.

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