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Car Insurance Policy Premium Factors

Car Insurance Policy Premium Factors

Car insurance policy? Why does everyone pay a different price? Have you been wondering why it seems everyone you know is paying lower insurance rates than you? Insurance companies use key factors when getting your insurance premium.

We will take a look at some of these factors that affect the cost your premiums to help you get a better understanding of your costs and maybe provide advice that could save you money.

What you’re driving

Auto insurance companies usually have vehicle safety ratings which are collected by large amounts of data from claims and analyzing safety reports. Discounts are provided for customers that drive safer vehicles.

Are you driving a flashy sports car? Some insurance providers may increase car insurance premiums if a car is more susceptible to occupant injury, theft or even damage. Insurance providers will offer lower premiums on vehicles that aren’t as exotic.

Driving highly safety rated vehicles in passenger and driver protection, such as Ford Expedition will provide discounts on your insurance premium. Driving a Civic, one of the most popular cars with low average safety ratings and appeal to car thieves means you pay more to insure.

I suggest before you purchase a vehicle, do a bit of research. Does that vehicle you really desire have strong safety ratings? If this model stolen often? Find the answers to a few easy questions could prove keeping you with lower insurance premiums.

Car Insurance Policy and Deductible

Choosing a car insurance policy that is required by law in your state and any additional coverages. The specifics in your auto insurance policy and deductible play a key role in your monthly payment.

Should I choose a higher deductible? Choosing a higher deductible could mean a lower monthly payment; while choosing a lower deductible likely means you may have higher monthly cost. Choosing additional insurance coverage not required by law will most likely increase your monthly payment.

Many insurers offer discount programs if you bundle your insurance together such as homeowners insurance with auto insurance or even multiple car discounts.

Do you often drive and how far?

Those of us that use their vehicle for long-distance commuting and business usually pay more than those that drive less. Driving more could mean that you pay more as driving more increases your risk of accident.

You should consider car-pooling, riding a bike or using public transportation if you really want to save money. Reducing your annual driving mileage may lower your total insurance premium costs.

Garaging Property

Do you live in a city or urban area, if so it’s likely you will pay higher premiums due to higher chances of vandalism, theft and even accidents. Do you live in a small town or rural area, if so chances are you will pay less for your car insurance.

Driving record

Causing crashes means you pay more for insurance opposite of those that have a safer driving history as they will typically have lower car insurance premiums.

Haven’t been in a crash for a quite awhile? Don’t be complacent stay with those good driving habits.

If we could rewrite history we could take off crashes on our record but unfortunately we can’t do that so just let those accidents be a reminder to focus on driver safety and the longer time passes accident free your insurance premium will decrease

Your credit history

Insurance companies use predictive credit history information that can be a factor on your insurance premium, by maintaining a good credit history chances are you will reduce the cost of your auto insurance premium, which equals savings in your pocket.

“Your” information sex, marital status and even age

Rates for accidents are higher for a driver under the age 25 seemingly more so with single males. Insurance rates are affected by this information.

Are you a student, if so you may qualify for a discounted insurance premium. Maintaining good grades can save you money on your auto insurance. Ask your insurance company about student programs.

How about discounts?

Take a safety course in your state it could save you hundreds. It does seem to be a good idea to ask about discounts. Some insurance companies even offer a driver safety program using a device attached to your vehicle. This device records how you drive and can lower your premiums the safer you drive.

Tips that save money: Why Choose Auto Insurance Broker or Check out: Auto Insurance Premium

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