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
http://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.
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.
CarInsurance.com's online insurance marketplace gives an
opportunity to consumers and to insurance companies. We offer the
ability to shop for car insurance online.
Consumers can receive quotes from many insurance companies, in
some states you are able to purchase your insurance instantly,
online. You don't have to drive your car to buy car insurance.
Buy online...anytime!
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