There are many variables that go into the cost of your car insurance premium. Furthermore, not all insurance companies use all of the items listed below, and others may have additional factors they look at.
1. How is your driving record?
The fewer accidents and moving violations on your record, the less you will pay for your insurance. New drivers may also pay more.
2. Your annual mileage
The more you drive, the higher the probability of you having an accident. If you use your vehicle for commuting to work, or work far from your home, you will pay more. If you only drive occasionally or just for pleasure, you will pay less.
3. Where do you live?
Some locations are more prone to vandalism, theft and accidents. It is common that city drivers pay more for their insurance than people who live in small towns or rural areas. Areas with higher medical and car repair costs also have higher insurance rates.
4. How old are you? Are you a new driver?
Teenagers tend to have more accidents than drivers with many years of experience, so car insurance rates are higher for teenagers and people under the age of 25.
5. Are you a man or a woman?
Insurance companies have been keeping records and statistics since they came into existence. They have found that women generally get into fewer accidents, have lwer rates of DUIs, and serious accidents than men do as a group. Because of these statistics, women generally pay less for car insurance than men do. However, after you develop a personal driving history, your own history will have a greater affect on the cost of your car insurance
6. What kind of car is being insured?
The price of the car, the cost to repair it, and safety records all factor into the price you will pay for your insurance. Cars with high quality safety equipment may get special discounts, whereas an expensive car with a high performance engine and higher rate of theft will be more expensive to insure.
7. What is your credit score?
Believe it or not, your credit can be a large factor in the rate you pay for your car insurance. Some companies think that if you have a low credit score, you may be more likely to file a claim. Credit-based insurance scores take into consideration your payment history, bankruptcies, outstanding debt and length of your credit history. If you make all your payments on time, you will have better credit and therefore pay less for your insurance if it is credit based.
8. What coverages and how much did you choose?
The more coverage you choose and the higher the limits, the more you will pay. You can offset this by having a higher deductible.
You should speak to a qualified insurance agent to help you determine what the best coverage is for you. Shopping by price along to save money on your insurance could end up costing you thousands, so set aside some time to speak to an expert about making the right choice for you.