When it comes to car insurance, there are a number of factors that can affect the price of your premium. These include your car, driving habits, demographic factors, and the coverages, limits, and deductibles you choose. Your driving record is the most important factor when it comes to determining your car insurance rates. Insurance companies review your driving record for the past three to five years, depending on your state.
If you have caused a car accident or received traffic tickets, expect to pay more for car insurance. In addition to your driving record, other factors that can influence your car insurance rates include your age, the anti-theft features of your car, and where you live. People who live in larger cities tend to suffer more theft, vandalism and accidents than their rural counterparts, and this can increase their rates. Insurers also look at the zip code you live in as well as the cost of medical care, auto repair costs, and the frequency of car accident lawsuits in that area.
Your gender can also affect your car insurance rates. Men around 45 years old pay an average of 6% less for car insurance than their female counterparts. Young drivers can be added to a family policy to help reduce the impact of their high insurance rates. If you have good credit, you can save a little money on car insurance in the other 47 states. Annual mileage is another factor that can influence your car insurance rates.
The longer you are on the road, the more likely you are to have an accident. However, don't focus so much on the cheapest prices that you skimp on the types of coverage you actually need. If you're a new driver and this is your first car insurance policy, you can expect to pay a higher rate. Age affects the cost of car insurance by up to 38.9% on average because certain age groups are statistically more likely to be involved in accidents. If your history is especially dangerous, you may even have to work a little harder to find an insurance company that will insure you.
