For most people, car insurance is just another expense they need to deal with. So, it is normal to end up comparing quotes from different auto insurance companies and end up choosing the cheapest one. However, this generally means that one is choosing lower amounts of coverage, or else raise deductibles. Even if at face value these two aspects seem to be the ones which affect the cost of your car insurance, there are various other factors as well. Some of these can be controlled so as to help you lower your costs. Let us take a closer look at these factors so as to enable you to make a well informed choice.
1. Your gender and age – according to statistics, young male drivers have accidents much more than young female drivers. On the other hand, older female drivers do not do that well, when compared to males of the same age range. This has a slight effect on the premium costs.
2. Single or married – married people tend to have fewer accidents than singles.
3. Location – obviously most traffic accidents tend to occur close to your home. So the location where you live will affect the insurance rate. Densely populated areas will result in a higher risk of accidents as there are more cars on the road. Theft is also more common.
4. Credit score – the majority of insurance companies will take your credit score into consideration when determining your rate. Low scores will often lead to a higher premium.
5. Your Profession – certain professions receive favourable rates because they are more careful by nature. This includes police officers, pilots, and nuns. Professions who are constantly on the road, such as journalists and delivery persons are more prone to accidents, and so the rate may be higher.
6. Your car’s safety rating – this is based on various factors, but the higher it is, the lower the premium is likely to be. If your car has safety features like airbags, traction control and automatic seat belts, is obviously recommended.
7. The size of the vehicle – small cars are not as safe as larger ones. The bigger your vehicle, the higher its safety rating. However, the engine of the car will also be taken into account. If your car has a relatively large engine, the premium will be higher.
8. The age of the car – the older the vehicle is, the bigger the chances that if involved in an accident it will end up getting scrapped. So the insurance is going to be lower than that of a brand new car.
9. Risk of theft – if your car is likely to be a target for theft because of its model, or as it does not have any anti-theft features, the premium will be higher.
10. Driving history – if as a driver you were previously involved in accidents, or you got several tickets, then the insurance premium will be higher because you have a blemished driving record.
11. Driving activity – the more you drive your car, the higher your chances of being involved in an accident. Some insurance companies will take into consideration the distances that you drive, where you go and when you drive.