Updated on December 1, 2017 by admin
Auto Insurance Policies and Auto Insurance Companies vary greatly within the industry, but there are often a few common factors among most insurers that play an important role in determining how much you pay. This article is a guide to helping you understand some of the common factors that go into Auto Insurance to help you find a better quote.
First, be aware that auto insurance quotes vary widely from company to company. There are a few reasons for this:
This is why is it so important for you to shop around for the auto insurance policy that is right for you.
Factors that may affect the price you pay for auto insurance coverage that are common amongst insurers are:
The Policy you Buy
The Car you Drive
In General, the more expensive the car, the higher you will pay for coverage.
What you use your car for
Generally, insurers require higher premiums for cars that are more at risk or susceptible to damage or occupant injuries.
How much you drive
Long distance commuters generally pay more because they are exposed to more risk of accidents.
Your driving record
If your record is spotless, expect to pay less than someone who is accident pron.
Your age, sex, and marital status.
Accident rates are higher among younger and older individuals. This is especially true for single males under the age of 25.
Your Credit History
Insurance companies use your credit history as a predictor for future auto insurance claims. A better credit history generally means paying less.
Be sure to ask for discounts if you are: