subject: Automotive Policies What Impacts On Ones Auto Insurance Premiums? [print this page] There are so many different factors that will dictate the amount that you have to cough up for your auto insurance premiums. Each of these factors is statistically based on the risk for a specific population in a specific region.
The higher the risk associated with you, the higher the amount of money that you are going to have to pay for your car. Below are some of these risks that will affect the premiums that you have to pay.
Age Statistically, drivers who are younger than 25 years old are more likely to be in an accident than those who are older. This means that if you are under 25, your insurance premiums are more than likely going to be higher than when you turn 26.
Gender It might seem like a bias, but women are more likely to cause or be in accidents than men. This is statistically proven and, thus, the auto insurance premiums for women are slightly higher than those for men.
Geography People who are living in a geographical location where the number of drivers is fairly low will have much cheaper insurance premiums than their counterparts.
Driving violations When deciding your auto insurance premiums, the insurer will need to know if you have had any driving violations in the past. If so, then you are more than likely to have another one and, thus, the insurer will give you a higher quote on your premiums than somebody with a clean slate.
Automobile the type of vehicle that you are looking to insure will greatly dictate the amount you will have to pay for premiums. An SUV, for example, will cost much more than a tiny two-seater.
Credit rating the insurance companies will always research into your credit score. They view people who have very low credit ratings to be of high risk. Thus, they will charge you higher premiums if you have a very bad credit rating. You may want to improve your credit rating or score first before you apply for your auto insurance.
There are some things that you may do to make sure that you get the lowest auto insurance premiums available today. One of the best places to start is by shopping around comparing different insurers to get the cheapest quotes.
by: John Keene
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