Before you buy a new car, it’s a good idea to understand all the costs associated with the purchase of the vehicle — including the cost of Automobile Insurance. We are here to help! This article explains the basics about how car insurance premiums are determined and can give you some hints about how to lower your rates.
If you have questions or would like an Accurate Quote, call 949-222-0444
A number of variables affect the rate you will pay for your auto insurance premium. Some are listed below. Learning about how your rates are determined can assist you with your auto buying decision and help you to keep your insurance rates as low as possible.
Top Ways to Save on Your Auto Premium:
- Choose a higher deductible
- Keep up your driving record as flawless as possible
- Get a low-mileage discount by driving less
- Safety features such as anti-lock brakes and airbags can lower your rates
- Having an anti-theft device can help
- Ask about our multi-policy discounts
The Basics About Auto Insurance Rates
Factors that impact auto rates include:
- The type of vehicle you drive
- Where you live
- Age of insured driver(s) and years of driving experience
- Age of car
- Value of car
- Driver record
- How many miles you drive
Type of vehicle
Both size and performance impact premium costs:
Size: Larger cars tend to be less expensive to insure than smaller cars because they typically suffer less damage in an accident.
Performance: High-performance vehicles, such as sports cars, tend to be more expensive to insure since they are statistically driven more aggressively. As a result, they tend to be involved in accidents more frequently.
Value and age of vehicle
The more expensive the car, the more it will cost to insure. The newer the vehicle, the more it costs to insure.
Vehicle usage and location
Typically, the cost is based on the average amount of miles the automobile is driven: the higher the mileage, the higher the premium. Where you live or store your vehicle has a major impact on what your automobile insurance will cost. Typically, the more densely populated an area is, the higher the auto premium. More cars on the road means a greater risk of accidents.
One of the most important factors in determining auto premiums is the driver’s age. Young drivers under the age of 25 are statistically up to four times more likely to be in an accident, so rates are typically higher than their older counterparts. Additionally, males under the age of 25 will be more expensive to insure than females under the age of 25.
Studies indicate that drivers with past claims are more likely to have future claims, so the driving records of the individuals listed on the policy greatly impacts the cost of the policy. Drivers with moving violations, accidents and/or claims in the past three years will usually pay a higher price for their automobile insurance than those ensuring the same vehicle but are “loss-free.”
The higher your deductible, the lower your premium.
You can earn premium discounts based on the vehicles safety features, such as anti-lock brakes, air bags, anti-theft devices and having more than one car on the policy.
What to do before purchasing a vehicle?
Test drive the Automobile Insurance rate by contacting us at 949-222-0444. We would be happy to provide you all the information that you need to help you make your best buying and coverage decision.
Disclaimer: This article is provided for informational purposes only. The information provided herein is not intended to be exhaustive, nor should it be construed as advice regarding coverage. Eligibility for coverage is not guaranteed and all coverages are limited to the terms and conditions contained in the applicable policy.
ISU-ERM Insurance Brokers
2101 Business Center Drive
Irvine, CA 92612