Top 10 Factors That Affect Your Car Insurance Premiums

 Top 10 Factors That Affect Your Car Insurance Premiums - People are often disappointed to find that their car insurance rates vary drastically from other people they know. The way rates are calculated can seem like a complete mystery.

There isn't an exact science to the way insurance premiums are determined, but there are a large number of factors you can review that affect your rate. All these factors point to how big a risk you as a driver are to insure. The impact of these factors on the price of your premium can also vary for each insurance provider.

Top 10 Factors That Affect Your Car Insurance Premiums

Here's our rundown of the top 10 factors that affect your car insurance rates, including both those you have control over and those you don't.

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The most discussed factor that affects car insurance rates is your location. It is relatively common knowledge that Louisiana car insurance is more expensive than states like Nebraska.

This difference depends on several factors such as the number of claims in your area, the number of fraudulent claims, the rate of crime and stolen cars, and adverse weather that may affect your vehicle. Living in densely populated cities can also make your rates higher compared to living in a rural area because accidents are more likely to happen where there is more traffic and risk of crime.

Age plays a big role in determining your car insurance premium. Based on statistics, teenagers are more likely to be distracted behind the wheel and cause an accident. Teenagers also have less driving experience, making them more of a risk to insure.

Prices generally drop when drivers turn 25, especially if they have been driving for longer and therefore have more experience.

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Gender is another factor that affects your car insurance rate and is also based on statistics. Men are more likely to crash when they are younger and will pose a greater risk to an insurance company.

Gender differences that affect car insurance typically level out with age. When drivers get into their 30s, the prices are closer.

Statistically, married drivers have been found to pose less of a risk to insurance companies than those who are single according to car accident data. Married couples also often get a discount if they are able to combine their policies.

Your driving record also affects your car insurance premiums. Drivers with good accident-free records may receive lower rates and qualify for more discounts.

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Drivers who have an accident or a moving violation on their records pose a greater risk to insurance companies, and their rates are typically higher.

In addition to reviewing your driving record, your accident record is also important. Insurance companies will look at how many claims you have had, as well as how many of these claims you are at fault to assess your level of risk.

Paying your bills on time can help you get a lower car insurance rate. This can be based on both your credit history as well as your car insurance payment history, even if it is with a different insurance company than the one currently giving you a quote.

Based on a number of factors, the type of car you drive affects your insurance premium. Certain models of vehicles have been in more accidents and have filed more claims, making them more of a risk to insure. Other factors considered when looking at the type of vehicle you drive include purchase price, theft rate, repair costs, accident rate and safety testing.

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Ironically, cars with extra safety and luxury features may cost more to insure because they cost more to repair.

When looking for a new vehicle, take the time to get insurance quotes for each model you're considering.

How much you drive and under what conditions is also taken into account when determining the price of your insurance premium. The less you drive, the less risk you have of getting into an accident. This factor is also related to your location. If you spend time commuting into a busy metropolitan area, even if you live in a rural area, your insurance premium may be higher due to an increased risk factor.

More coverage of your insurance premium will result in higher rates as well as having a lower deductible. Compare quotes and talk to agents at low-cost insurance companies like GoAuto to see all your options and understand what kind of coverage works for your bid.

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Everyone wants the best price available for their car insurance. At GoAuto, we help you find that price so you can stay on the road and have access to good coverage should you ever be involved in an accident. We have low down payments, flexible monthly payments, and we don't push you to buy expensive add-ons. Call us today to get your quote. Learn everything you need to know about the top 10 factors that affect car insurance prices the most.

The biggest factors that affect car insurance rates are state coverage requirements, age, and the make and model of the car. The more coverage you have to buy in your state and the more valuable your vehicle, the more you will pay for auto insurance. Teenage drivers also tend to pay more in premiums than older, more experienced drivers.

Some of the factors that affect car insurance rates are within your control, such as your credit history and whether you have ever been convicted of drunk driving. Other factors are at least largely out of your control, like your city's population density and your age.

Your state of residence is one of the factors that affects car insurance rates the most, as premiums for state minimum coverage vary by up to 318%. Each state has its own auto insurance laws, with different minimum requirements and different categories of required coverage. The more coverage you have to buy, the more expensive your policy is likely to be.

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Car insurance rates can vary by up to 367% based on age. Young drivers pay more for car insurance as they are considered to be less experienced and more likely to get into an accident. After 25 years, a driver's insurance starts to decline.

On the other end of the spectrum, senior drivers are often charged more after they turn 65. Not only are older drivers more likely to be involved in a car accident than younger adults, but they are also more likely to be injured in a collision.

Some cars are cheaper to insure than others. For example, a truck is on average 3% cheaper to insure than a sedan.

Car insurance companies prefer to insure safe vehicles as they are less likely to lead to expensive claims. So a car with high safety ratings can get you a bit of 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. They tend to be more expensive to insure as a result.

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Traffic violations and car accidents are factors that can increase the cost of car insurance coverage by anywhere from 20% to 200% compared to what you originally paid. The amount by which your costs increase depends on a few things: the seriousness of your offense and whether you have been previously convicted. Multiple violations make you a high-risk customer for your insurance company. Some companies use traffic violations as a factor in car insurance pricing for only three years, while others keep them on your record for longer. It's worth shopping around again three years after your last incident if you can get a better deal elsewhere.

Your annual mileage is a factor that can affect your car insurance rates because the more you're on the road, the more likely you are to get into an accident. As a result, car insurance companies charge you more if you have a long daily commute. If you only drive in your spare time, you will probably pay less.

Your credit history is an important factor insurance companies use when calculating premiums in most states, given that drivers with a bad credit score pay an average of 71% more than drivers with good credit. But if you live in California, Massachusetts, or Hawaii, you're in luck; they don't allow auto insurance companies to factor in your credit score. On the other hand, if you have great credit, you can save some money on car insurance in the other 47 states.

Your driving record is a factor that affects your insurance costs, for better or for worse. If you have a clean record, you can end up paying 40% less than drivers with a bad record, thanks in part to the availability of safe driver discounts.

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But you will probably be charged more if you make a lot of insurance claims, regardless of whether the accidents were your fault or not. Even your first accident can raise your rates for the next 3-5 years.

The number of years you have been on the road also matters. For example, new drivers over the age of 25 tend to pay more than their peers who have been behind the wheel for years.

The area you live in is an important one

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