What factors affect car insurance premiums?

What Factors Affect Car Insurance Premium?

Nearly 5.3 million people are involved in some form of an auto accident every year. Whether you just started driving or have been doing it for years, there’s a very high probability that you will be involved in an accident someday, which is why having coverage is so important. Studies also show that roughly 1 in 8 drivers are not insured, which can jeopardize your car, lifestyle and savings account if you’re not careful. Shopping for insurance these days is an important endeavor that takes deliberate planning and execution. If you’re not careful, you could choose a premium that’s way overpriced or simply doesn’t fit your needs. There are many different elements that go into car insurance costs, which can have can both a positive or negative effect on how much you spend. Here are some factors to consider before shopping for auto insurance.

Driving Factors that Affect Your Coverage

Your driving history has an enormous impact on how companies determine your car insurance premium. Are you a clumsy driver who’s prone to road rage, tickets and accidents? If so, then your costs are most likely going to be higher. However, if your driving style is characterized as a safe defensive driver, there’s a very good chance that you’ll end up with lower rates. Whether you define yourself as a good or bad driver, there are other factors that can come into play other than your driving style. The amount of time you spend in your car automatically increases your chances of something happening, regardless of how well you think you drive. The majority of accidents occur on highways, so try to avoid using roads with high-speed traffic. If you have a long commute or your profession requires you to travel a lot, then this could potentially increase your costs. Keep in mind that weather also plays a key role in effecting your driving style. If you live in an area that experiences frequent storms that alter road conditions, then you may have to invest a little extra into your insurance premium.

Non-driving Factors That Affect Your Auto Coverage

There are many other non-driving factors that play a role in your car insurance premium. Did you know that your home and where you live falls into this category? For instance, if you live in the suburbs, then you have a lesser chance of getting in an accident than you do if you live in the city, where the traffic is more abundant. Also, people who own homes tend to pay less on auto insurance, thanks to discounts from certain carriers. Unbeknownst to many, there are certain aspects of your personal life that have a major influence on your auto insurance costs as well. Studies show that married couples tend to have fewer car accidents than singles, so if you’ve tied the knot, there’s a good chance you’re paying less on coverage. You’re also probably looking to pay more if you have any kids who have recently received their license. Statistics show that the risk of automobile accidents is higher among teenagers than any other age group. And last but not least, it has been widely conceded that women are safer drivers than men and are less likely to be involved in an accident. Based on that sentiment, it appears that men are likely to pay higher rates than females – sorry fellas! Regardless of your gender, your daily responsibilities and financial behavior are also taken into account when it comes to the cost of your insurance premium. If you’re keeping your credit score high it can lead to great rates and fewer claims. Make sure you pay your bills on time so that you have access to these premium benefits!

After taking these factors regarding the cost of your auto insurance premium into consideration, we can help make sure that all of your insurance needs are up-to-date. Give us a call to have an agent review your policy to confirm that your auto insurance has the right amount of coverage for your family and your needs. We can also ensure that you are getting the best rate for your policy. You might even qualify for additional discounts, especially if you have your home insured through us!