The coverage you choose, where you live, the kind of car you drive, how your car
is used, who drives the car, and information from consumer reports impact the
cost of your car insurance. Below is a more detailed look at seven key factors
that affect your car insurance premiums, as well as some suggestions for
keeping the costs down:
1.
Your coverage and deductibles
Car
insurance providers allow you to choose your deductible and decide whether to
add additional coverage that isn’t necessarily required by the laws in your
state. The specifics of your coverage and deductibles play a major role in your
monthly payment.
Typically,
choosing a higher deductible means a lower monthly payment; choosing a lower
deductible means a higher monthly payment. Additional coverage gives you added
financial protection, depending on the claim, but will also add to your monthly
costs.
2.
What you drive
By
collecting a large amount of data from customer claims and analyzing industry
safety reports, car insurance providers often develop vehicle safety ratings and offer discounts to customers
who drive safer vehicles.
Some
insurers increase premiums for cars more susceptible to damage, occupant
injury, or theft, and lower rates for those that fare better than the norm.
2010
Toyota 4Runners, for example, rate highly in terms of driver protection and
passenger protection, which means discounts on insurance. And while two-door
Honda Civics are one of the country’s most popular vehicles, their
lower-than-average safety ratings and desirability to car thieves make them
more expensive to insure.
Before
you head down to the dealership, do some research. Does the vehicle that has
caught your eye have strong safety ratings? Is the same particular model often
stolen? Knowing the answers to a few simple questions can go a long way in
keeping your rates low.
3.
How often, and how far you drive
People
who use their car for business and long-distance commuting normally pay more
than those who drive less. The more miles you drive in a year, the higher the
chances of an accident – regardless of how safe a driver you are.
Consider
joining a car or van pool, riding your bike, or taking public transportation to
work. If you reduce your total annual driving mileage enough, you may lower
your premiums.
4.
Where you live
Generally,
due to higher rates of vandalism, theft, and accidents, urban drivers pay more
for car insurance than do those in small towns or rural areas.
5.
Your driving record
Drivers
who cause accidents generally must pay more than those who are accident-free
for several years.
If
you’ve been accident-free for a long period of time, don’t get complacent!
Remain vigilant and maintain your good driving habits.
And
even though you can’t rewrite your driving history, having an accident on your
record can be an important reminder always to drive with caution and care. As
time goes on, the effect of past accidents on your premiums will decrease.
6.
Your credit history
It
has been shown certain credit information helps predict future insurance
claims. Where applicable, many insurance companies use credit history to help
determine the cost of car insurance. Maintaining good credit can have a
positive impact on the cost of your car insurance.
7.
Your age, sex and marital status
Accident
rates are higher for all drivers under age 25, especially young males and
single males. Insurance prices in most states reflect these differences.
If
you’re a student, you might also be in line for a
discount.
Most car insurers provide discounts to student-drivers who maintain good
grades. In some states, younger drivers are also able to take driver safety
courses that will lower premiums.
No comments:
Post a Comment