Most people are looking for a low car insurance price. In many cases, it’s the choices you make about the coverage you want that determine the cost of your car insurance premium.
Auto Insurance Premiums
Companies look at the following factors to determine your car insurance premium:What you buy
- How many coverages you buy
- The deductibles
What kind of car you drive
If you are buying or selling a car, you will need to re-evaluate your auto insurance needs.Generally, the more expensive the car, the higher the auto insurance price.
Where you drive
Generally, due to higher rates of vandalism, theft, and accidents, urban drivers pay a higher auto insurance price than those in small towns or rural areas.How much you drive
People who use their car for business and long-distance commuting normally pay a higher car insurance premium than those who drive less.Your age, sex and marital status
Accident rates are higher for all drivers under age 25, especially young males and single males. Car insurance prices in most states reflect these differences.Your driving record
Drivers who cause accidents generally must pay higher car insurance premiums than those who are accident-free for several years.Your credit history
Studies have shown that credit history is a powerful predictor of future auto insurance losses. Many insurance companies consider certain credit characteristics in addition to many other factors when determining an individual's car insurance premium.What can I do to save money on my auto insurance premium?
If you're shopping for a car, consider how your choice will affect car insurance premiums.Some insurers increase premiums for cars more susceptible to damage or occupant injury, and lower rates for those that fare better than the norm.
Ask about auto insurance discounts for good students, insuring more than one vehicle, accident-free driving, and others.
Consider joining a car or van pool, or finding other transportation to work. If you reduce your driving mileage enough, you may lower your car insurance price.
Drive carefully.
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