Most insurance companies use certain factors to calculate how much you’ll pay for auto insurance. Below is a look at some factors that can affect your auto insurance premiums:
1. Coverage and Deductibles
Auto insurance providers allow you to choose your deductible and you can decide whether to add additional coverage that isn’t necessarily required by law. While it gives you added financial protection, it can also add to monthly costs.
2. What You Drive
Auto insurance providers often develop vehicle safety ratings and offer discounts to customers who drive safer vehicles. Some insurers increase premiums for cars more susceptible to damage, occupant injury, or theft, and lower rates for those that fare better. Knowing the answers to a few simple questions can help keep your rates low.
3. How Often and How Far
People who use their car for business and long-distance commuting normally pay more than those who drive less. The more miles you drive in a year, the higher the chances of an accident. Consider joining a car or van pool, or riding your bike to work every now and then.
4. Your Driving Record
Drivers who cause accidents generally must pay more than those who have been accident-free for several years. Remain vigilant and maintain good driving habits. As time goes on, the effect of past accidents on your premiums will decrease.
5. Age, Sex, and Marital Status
Accident rates are higher for drivers under age 25, especially young and single males. Insurance prices in most states reflect these differences. If you’re a student, some auto insurers provide discounts if you maintain strong grades.
Submitted by State Farm Insurance