When it comes to auto insurance rates, who you are determines
what you pay. Automobile insurance premiums are based on a large
number of factors, some of which you can control, and some of
which, alas, are incontrovertible facts of life. Statistically,
a sixteen-year old boy with a 300 horsepower sports car in a big
city is far more likely to hit something than a 35 year-old
married guy driving a minivan around the suburbs.
While you can't change your age and some other factors, there
are things that you can do to keep insurance premiums as low as
possible.
Factors you CAN'T change that impact your auto insurance
rates: Your age Dick Clark and Sophia Loren notwithstanding, aging is
unavoidable. And while you may be a mature-looking teen or a
youthful octogenarian, the oldest and the youngest drivers are
far more likely to have accidents.
Gender Whether it's the mothering instinct or fewer NASCAR fantasies,
women statistically make safer drivers.
Marital Status Ok, you can change this, but there have been no reports of
people marrying simply to lower their insurance rates.
Factors you CAN change that impact your auto insurance rates:
GeographyWhere you live matters.For instance, those living in rural
America are far less likely to have a collision or a stolen car
than those living in a city. But, sometimes even just moving
across the street can change your rate.
Driving violations Speeding tickets, running red lights, failure to yield, etc., all
count toward your auto insurance rate.
Your vehicleIf you must have that cherry red Corvette or the Ferrari
Testarossa, be prepared to pay for it. Your insurance premiums
will be higher.
Accident claims While you can't change the past, keeping your slate clean and
free of accidents will hold you in better stead than lots of
fender benders.
Credit ratingThat's right -- many insurance companies view having a poor, or
even no credit history as suggestive of higher risk.
Occupation A little easier said than done. Believe it or
not, insurers have found correlation between your occupation and
risk. Makes sense that the pizza delivery guy could be a higher
risk!
Other factors that go into determining premiums: Miles driven per year
Distance to work
Occupation
Years of driving experience Business use of the vehicle
Whether or not you currently have auto insurance
Theft protection devices (often results in discounts) Multiple
cars and drivers (another opportunity for discounts)
Overwhelmed?It can be more than a bit confusing when trying to decide the
best and most affordable coverage for your vehicle. Like
anything else, get good advice and comparison shop. With the Web
at your fingers, you have all the information and power to get
the best deal.
Please note that this description/explanation is intended only
as a guideline.
For more information about auto insurance please go to:
www.Insurance.com
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