Car insurance premiums can change over time due to the way insurance companies determine their rates. For example, if your car insurance company considers you a high-risk driver, you may be paying more for your insurance than your friends and neighbors. The factors that can affect the cost of your car insurance are many. Some providers will find any opportunity to charge you more, while others are great at giving discounts to safe drivers.
So where does your insurance premium fall? Find out what most providers consider when crafting policies and determining rates. This can be especially helpful if this is your first time buying car insurance. Keep reading to find out how you might be able to lower your premiums today.
The Type of Car You Own
Insurance providers want to ensure safe vehicles that will cost them less over time. You may save money on your policy if you own a car with high safety ratings. These vehicles are equipped with antitheft and other security features that protect you and your insurance from paying for a new vehicle. Further, the make and model of your car can change the price, since some are more likely to get stolen than others.
Where You Live
The state in which you live and even the neighborhood you occupy can greatly change the price of your coverage. For instance, some states require more coverage than others, which will increase your premiums. Furthermore, living in an urban area may increase your rates, while living in a small town or remote area is cheaper. Providers may also charge more if you live in areas such as:
- High-crime neighborhoods
- Flood zones
- Tornado zones
Where You Park Your Car
Since parking your car on the street puts it at risk, providers may charge more if you don’t have a garage or driveway. Where you park your car influences how safe it is, so insurance companies may charge more if you don’t have a safer place to keep it.
Your Driving Record
A clean driving record can save you money on car insurance. Providers assume you’re a safe driver if you don’t have violations or accidents on your record. On the other hand, providers must protect you and themselves if you get into numerous traffic incidents. Filing a claim on your car insurance can instantly increase the price. You should avoid mentioning an incident unless you’re going to file, since providers can take mere mentions of claims into account.
Your Driving Experience
Proving you’re an experienced driver can save you money in all sorts of ways. The number of years you’ve been driving may also lower your insurance costs. For instance, many providers offer discounts to teens who attend driving school and log a certain number of hours behind the wheel.
Your Age
Age is one of the largest factors that determines how much you’ll pay for auto insurance. For instance, someone in their teens or early 20s may pay more than $6,000 a year, while many individuals over the age of 50 pay about $1,200 each year. Providers consider teens to be risky drivers since they take more chances.
Your Gender
Though your gender plays a role in how much your auto insurance premiums may cost, the factor changes as you age. For instance, coverage for teenage male drivers costs the most, but providers have determined that men over 45 are safer drivers than women, typically charging less for their coverage.
The Amount of Coverage You Buy
The type of coverage you choose will greatly affect the cost of your insurance. Most states require liability insurance at minimum, though others expect fuller protection. Regardless of the law, you may want more protection for you and your vehicle. Other types of car insurance you can buy include:
- Collision
- Comprehensive
- Medical payments
- Uninsured driver
- Personal injury protection
The Annual Mileage on Your Car
Though a good portion of car accidents happen at intersections, the majority take place on highways and other major roadways. Since you’re more likely to get into an accident the more you drive, providers account for your driving behavior. For instance, you might not pay as much if you just drive around town versus someone who commutes an hour to work each day.
Your Relationship Status
People in committed relationships are less likely to take risks on the road. A partner statistically makes it more likely that you’ll get to your destination safely. Being married can lower your premium, since couples get in fewer accidents than individuals.
Your Job
Though some states ban this use, some providers may charge differently based on one’s career. People with certain jobs are less likely to get into accidents and therefore don’t pay as much. Most providers take into account how far you travel to work, but you may receive a discount for having a job title such as:
- Teacher
- Nurse
- Pilot
- Police officer
Your Level of Education
Since more educated individuals tend to file fewer claims, having a college degree can lower your premiums. Still, not having a degree likely won’t affect your rates, since most people don’t believe this is a fair ranking factor.
Your Coverage History
Providers will investigate a lot about your past if they can. One factor that may affect how risky they perceive you to be is your history with auto insurance. Gaps in your coverage may signal that you aren’t a responsible driver. Of course, if you’re a new driver, this won’t affect your coverage as much as other factors.
Getting a discount on auto insurance isn’t easy if you’ve been in several accidents or own an older vehicle. Still, knowing what factors can affect the cost of your car insurance can help you take steps to decrease the price. Maintain a good driving record, and don’t allow lapses in your coverage. Talk to your provider about your driving behavior to find out if you can get a discount for living a safe lifestyle. Get the best car insurance in Southern California when you work with agents who are on your side—contact Saferoad Insurance today for a free quote.
