Your deductible, the amount you pay before your car insurance coverage kicks in, can be anything between $250 and $2,000. This is lot of money, especially for new drivers! So, it’s vital to know what companies are actually looking for, and how you can save your money on your car insurance in the long run.
Keep on reading to find out the top five factors that come into play when finding your insurance premium…
1. Personal Details
Age, gender and martial status are all considered when reviewing your car insurance application.
Your age is important to know, because if you are a very young, older driver, you may be deemed as more of a risk. Younger drivers have less experience on the roads, and older drivers may have poor health, like eyesight, which can obviously affect their visibility whilst driving. As younger drivers gain more experience their insurance cost will decrease.
Did you know that married drivers are statistically the least risky drivers to insure? Statistically, they have up to 50% fewer accidents compared to all other drivers. So, if you are married, make sure to tell your insurance company – as it may benefit your wallet!
Typically, young male drivers pay the most for their car insurance, although the cost difference between male and female drivers tends to even out when drivers are in their 30’s.
2. State Requirements
Each state has its own laws about car insurance, with different minimums and categories of required coverage. The more coverage you’re required to buy, the more expensive your policy is likely to be.
4. Make, Model and Mileage
Car insurance companies prefer to insure safe vehicles, as they’re less likely to lead to expensive claims. So, a car with high safety ratings could get you a discount. On the other hand, some vehicles are statistically more likely to be stolen, including the Honda Accord and any full-size Ford pickup, for example. As a result of this, they tend to be more expensive to insure.
Additionally, the more you’re on the roads, the higher your chances are of being involved in an accident. Therefore, mileage is something insurance companies consider.
4. Driving Record
If you have a poor driving record you are likely to end up with a heavy sum when it comes to insurance. If a company thinks you have the potential to cost them a lot of money, it’s understandable that you will be charged a larger amount to compensate for this.
Whereas, if you have a clean driving record, you will likely be rewarded for this by having a less expensive policy price.
5. Credit History
Your credit history is an important factor that many insurers will use when calculating premiums in most states. Drivers with a poor credit score pay an average of 71% more than drivers with good credit. So, it’s important you have a handle on all of your finances, not just your car insurance.
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We hope this article has broken down five of the biggest factors affecting the price of your insurance policy. Now it’s up to you to pick the right policy to suit your lifestyle.
