Factors that insurers consider when determining your auto premium.
If you’ve ever compared car insurance quotes, you know that the rates you get from one insurance company can be very different from another. That’s because each insurance carrier takes a different approach to determining your premiums. While there are dozens of factors that car insurance companies consider when calculating premiums, here are a few of the common factors!
It’s no secure that young and inexperienced drivers tend to be involved in more accidents than older drivers who have had more experience behind the wheel. As such, teenagers are considered to be a greater liability to insurance companies, which is why they tend to pay more for car insurance.
Your Accident and Traffic Offense History
A large portion of your premiums will be determined by your previous driving history. Someone with a history of offenses and accidents can expect a higher premium than someone with a clean record. In short, the former is a greater liability to the insurance provider than the latter. One of the easiest ways to reduce your car insurance premiums is to maintain a clean driving record for several consecutive years.
Make, Model, Year of Your Car
Not all vehicles are created equal. Some cars are safer than others and some cars are more expensive to repair. A vehicle that has more safety features and isn’t new-off-the-lot tends to be more affordable than a chic sports car that is brand new.
The more time you spend behind the wheel, the more likely you are to be involved in a collision. This is why just about every insurer will ask for your annual mileage. If you are looking for ways on how to reduce your monthly premiums, you can opt to drive less and lower your yearly mileage.