All states require drivers to carry car insurance. However, most drivers do their best to pay the lowest possible amount for insurance coverage. When calculating the cost of your insurance premiums, insurance companies consider several different factors. Some of the factors that are most likely to come into play include:
- The cost of your vehicle – More expensive vehicles tend to be more expensive to repair and replace than less expensive vehicles. As a result, they carry more expensive insurance premiums.
- The safety of your vehicle – The safer your vehicle is, the less likely you are to make expensive insurance claims. As a result, safer vehicles tend to incur a less expensive insurance premium.
- Your age and gender – Although you don’t have any control over these two factors, your age, and your gender will undoubtedly come into play when the insurance company calculates your premiums. Being under the age of 25 usually results in higher premiums, with the highest premiums reserved for teenagers. Elderly drivers may also pay higher premiums.
- Marital status – Studies show that married drivers are less likely to get into accidents. As a result, married drivers may pay less for car insurance than those who are not married.
- Driving habits – People who drive more miles have a higher chance of getting in an accident. Thus, if you drive a higher number of miles each year, you can expect to pay more for your insurance coverage than someone who drives fewer miles.
- Location – Most insurance companies will consider your location when calculating your premiums. If you live in an area with a high rate of thefts and/or car accidents, you are likely to pay more for insurance than you would pay if you lived in a safer neighborhood.
- Driving record – One of the most important factors affecting the cost of your car insurance is your driving record. If you have accidents, for example, you will pay higher premiums. Speeding tickets and other similar offenses may raise your premiums as well.
Lowering Your Car Insurance Premiums
Some of the factors car insurance companies consider when calculating your insurance premiums are out of your control. For example, you cannot alter your age or your gender for the sake of decreasing your car insurance premiums. However, there are certain factors you can change that may improve your situation in the eyes of your insurer and lower the cost of car insurance. To minimize the cost of insurance coverage, avoid having accidents, or getting speeding tickets. You can also lower the cost of your premiums by choosing a car that offers extra safety features, such as a car alarm, lane departure alert, and backup camera.
Another excellent way to make sure you are not paying more than you need to for car insurance is to work with a car insurance agent who can help you compare multiple quotes. Please contact Giuffre Insurance today to learn more or to discuss your coverage needs.
