Multiple different factors affect the amount you will pay for the cost of car insurance. If you are trying to lower the cost of your car insurance, you will want to keep these factors in mind. Some you won’t be able to change, while others you may be able to reduce. It’s worth noting that different providers can use different factors to work out the price.
Cost of Car Insurance: Factors You Can Control
How Often You Drive
How much you use your car can influence the price of your policy. A car that is driven more frequently will have a higher risk of an accident, this will increase the price. If you use your car for commuting purposes, then it’s likely you’ll be using your car during peak hours which can also lead to a higher risk for the insurance companies. Some people can offset this cost of car insurance by working remotely or cutting back on how far/ often they drive on the weekends.
Your Car
What type of car you have will inform the price of your policy. What insurers are looking for here is how safe the vehicle is, how well it protects the occupants, and how much damage it can cause. The size of the engine, how easy it is to steal, and repair costs will also be factored into the price you pay.
Type of Coverage
What kind of coverage you are legally required to have depends on your state. You do have a fair amount of control over your policy and can add or remove certain elements that will change the price. Your state will have a minimum coverage expected, but beyond that, you’re in control.
Your Credit Rating
If you’re a young driver you probably don’t have much on your credit rating. This won’t stop you from taking out insurance but the better your credit rating the better the cost of car insurance for your policy price will be. Your credit rating tells the insurer how likely you are to make your payments on time.
Cost of Car Insurance: Factors You Cannot Control
Where You Live
There’s not a lot you can do to change this, but where you live can have a significant effect on your policy price. Areas that have a higher rate of theft, vandalism, and accidents will incur a higher fee for their insurances. Typically urban areas will attract a higher price than more rural or suburban areas.
Driver Demographics
Policy prices are decided based on a large range of statistics, which means some people will have to pay more regardless of how well they drive. Younger drivers are usually charged more than mature drivers as inexperienced drivers are more likely to have accidents.
Men can also expect higher cost of car insurance than women based on the data available. Men are more likely to have road accidents and DUI’s (driving under influence). Due to there being a higher risk associated with men, the cost to insure is slightly higher.
Other Factors
Some other factors may come into play as well such as weather trends, insurance fraud, medical and repair costs, and cost of litigation. However, some of these things are dependent on what state you live in.
When you start looking for a new policy, make sure to check out your state requirements. You should also consider what premiums will be most useful for your situation.
Still have questions about car insurance? Learn more by calling us at (618) 779-5808.
Are you thinking about purchasing a car? One question you should be asking yourself is, What Kind of Cars Are More Expensive to Insure? Click the link to learn more.
