Finding the Right Coverage
If you're planning on signing up for car insurance there's a few things you want to keep in mind and possibly check before you start your search for the right policy. Many factors play into determining how much an insurance company is going to charge you ranging from your age to your credit history. Some auto insurance companies even use patented methods to determine your 'risk factor' before they let you enter an agreement. Below are some of the key elements that determine what kind of auto insurance premiums you can expect.
Age, Gender and Marital Status
Each of these personal attributes play a part in how much you will be paying. Age for example plays a major role in determining your premiums. New drivers are often rather expensive to insure. Teenagers and students can lower these rates by participating in drivers eduction programs which helps indicate to insurance companies they are less likely to be involved in an accident. Costs for drivers between the age of 25 and 60 tend to dip, but as people approach seniority the rates may increase based on the fact that there are higher accident rates and medical costs for older persons driving.
Gender also is important in this equation simply due to the fact that men are more likely to get into car accidents with women. The factual data shows that men are simply more dangerous drivers and tend to take more risks. Men also tend to drive more often then women do which increases there chances of being involved in an accident. Recently the EU ruled that this practice was discriminatory and had to stop but it still exists within the United States. Marital status can sometimes make a difference in premiums as living in a family household can indicate financial stability. Although this isn't always true, married persons may find they have slightly discounted rates.
Driver's Habits and History
If your past driving experiences are positive with little or no violations or demerit points it's quite likely your insurance premiums will be significantly lower than someone who has amassed a wealth of moving violations, accident reports or previous insurance claims. Although the past does not always dictate the future, insurance companies often rely heavily on your driving record to determine how much they should be charging you.
Additionally how much and how often you drive the car also comes into play. Inconsistent drivers who may use the car only a few times a month will cost less to insure than regular or chronic drivers. Higher crime areas may also warrant additional insurance for potential harm or uninsured motorist coverage. Your credit history will also play a role in determining how much the insurer can trust you when signing a policy.
Lastly the type and age of your vehicle come into play when calculating costs. The price differs substantially for insuring a motorcycle than a family sedan. Sports cars often cost more to insure than vans due to the fact that drivers are more likely to be involved in collisions, especially dangerous ones. Age of the car is also important. Sometimes you might choose the minimum coverage simply due to the fact that your car is not worth repairing if involved in a collision. Others might opt for full coverage auto insurance quotes if they want to feel secure with the maximum amount of coverage available.
Other factors will surface when you're choosing a policy but these are some of the main ones to look out for. Keep in mind that many of these can be altered to help lower your premiums. Taking drivers education courses or improving your credit rating will lower your costs as will driving less. Stay aware of what you can do to get a better premium and you'll find that your car insurance is cheaper than you might expect.