There are many different factors that affect your car insurance costs. It is impossible to know all of the factors, but there are some major ones that you can plan for, especially if you are trying to minimize your costs. Here are seven of those factors:
- Your history on the road – Driving history is one of the biggest factors used when calculating your risk as a driver. Drivers who have been in a lot of accidents are considered more likely to get into more accidents, and are therefore more expensive to insure. If you have a great driving history, on the other hand, you will have lower premiums.
- Your deductible and discounts – A higher deductible could mean a lower premium, but it could also mean that you have to pay more of any repair costs should the time come. The opposite is also true—lower deductibles mean higher payments, but also less you have to pay should you need a repair. You may also automatically be qualified for a number of discounts, so ask your agent about what discounts might be available to you.
- How often you drive – The more time you spend on the road, the more likely you are to be in an accident. If you have to commute more than an hour each day, you may see higher insurance costs, simply because you drive more than the average person. If you drive very infrequently, on the other hand, your costs will be lower.
- Where you live – The location of your home also has a bearing on your insurance costs, with people who live in cities being more likely to have an accident than people who live in suburban or rural areas.
- Gender, age, and marital status – Married women over the age of twenty-five are statistically safer drivers than unmarried teenage boys. These three factors will seriously affect your premiums.
- What coverage you’ve had before – The amount and kind of coverage you’ve had before, even from other providers, can affect your costs.
- Credit history – Many insurance companies consider your credit history an excellent indicator of your responsibility. Those with higher scores are less likely to make a claim, and therefore people with higher scores get lower premiums.
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