Paying for auto insurance is hardly a one-and-done deal. There are lots of factors that contribute to determining car insurance rates, including how much you\u2019ll be paying for your insurance premium. If you\u2019re unsure why you\u2019re paying the price you’re paying for your premium, check out the list of factors that determine car insurance premiums below.<\/p>\n
Statistics show that the more you drive your car, the more likely you are to get in an accident. If you\u2019re driving long distances on a regular basis, you\u2019ll likely be looking at higher insurance premiums. On the other hand, if you drive less than 7,500 miles per year or your daily commute is less than 10 miles one way, you may qualify for low mileage discounts<\/p>\n
Most people choose a car based on how the car makes them feel or based on what they can afford, however, that choice can and will affect insurance premiums. Insurance companies take into account the safety rating of your vehicle and if your vehicle is considered safe, you’ll pay a lower premium . In contrast, you can expect a higher premium for a flashier car like a luxury coupe or a sporty convertible.<\/p>\n
If you live in an area with a high crime rate, you\u2019ll likely pay a higher car insurance premium than you would if you lived in an area your insurance company deems safer. If you regularly park your car in a dangerous neighborhood, your car is at a higher risk of theft and insurers will raise your premiums accordingly. <\/p>\n
Your driving record, be it model or less-than-perfect, will affect the price of your insurance premium. If you\u2019re hoping to pay less for your premium, the fewer points or incidents on your record, the better. However, if you\u2019ve already racked up tickets or accidents on your driving record, a lower insurance premium may be out of your reach.<\/p>\n
The rate of crashes and death for teen drivers is much higher than adults. Because of this, you shouldn\u2019t be surprised that drivers under the age of 25 are more-than-likely going to pay a higher premium for your car insurance cost. However, know that the older you get, the lower your rates will be over time as you maintain a good driving record.<\/p>\n
You may cry sexism for this contrast in insurance premiums, but numbers don\u2019t lie. Because men are more likely to end up in an auto accident than women (based on accident statistics), men can expect to pay a higher insurance premium than their female counterparts.<\/p>\n
Credit affects your ability to purchase a car, your ability to own a house, and it also affects your car insurance premiums. As you can imagine, the higher your credit score, the more likely you’ll have a lower insurance premium. Additionally, if your credit score is tipping somewhere between average and lower-than-average, be prepared to pay a higher premium. The reason for this isn\u2019t based on credit score alone, but based on statistics that show drivers with lower credit scores are more likely to get in accidents, get ticketed by cops, file fraudulent insurance claims, and more.<\/p>\n
The idea of a married person being more responsible than an unmarried person may be somewhat of a stereotype, but it\u2019s one that many car insurance companies subscribe to. If you’re married, you can bet on paying a lower car insurance premium. If you\u2019re single and especially if you’re under the age of 25, you’ll be looking at higher car insurance rates than if you were married.<\/p>\n
The type and amount of coverage you choose will affect your insurance premium. If you chose full coverage car insurance or opt for higher coverage levels than are required in your state, you can expect a higher insurance premium. Conversely, if you select the minimum required coverage, you’ll pay a lower insurance premium.<\/p>\n