Millions of people are currently looking for ways to save on car insurance. If you drive, you need car insurance, but nobody wants to pay more than they should be paying for coverage. Did you know there are many factors that decide the cost of car insurance? If you understand these factors better, the chances are you’ll be able to find ways to bring your premiums down. There are many insurance providers out there – as well as price comparison sites that can give you a quote and a guide of how much your auto insurance will be.
Below are a few key factors in cost of car insurance. I’ve split them up into non modifiable and modifiable sections.
When auto insurance is concerned – the older you are, the better. 99% of the time, younger drivers receive higher premiums on their insurance as they have less on the road experience. Because of their inexperience, they’re more likely to have an accident – therefore, the cost of insurance is higher. It’s proven that younger people have more car accidents, so that risk the insurers are taking is passed on through the cost of insurance.
When taking age into consideration, it’s not only the younger drivers who have to pay more for insurance – the older ones do too. People over a certain age can have lower response time as well as vision and hearing difficulties that can potentially cause an accident – so senior drivers will also usually have to pay higher rates.
In most places, females are seen (and probably rightfully so) as safer on the road than their male counterparts. In my experience, women do tend to crash, but it’s usually men that drive fast and cause more accidents then women.
The car you decide to drive is also a large factor in how much you pay for auto insurance. The greater the engine in a car, the faster the car travels – and this is reflected in the price people are paying for their insurance. Take this into account, as well as the value of the car (more expensive parts – more expensive insurance), and you can dramatically reduce auto insurance premiums by the vehicle you decide to drive.
When you apply for auto insurance – you have to disclose your individual driving history. If you’ve been driving for ten years without a blemish on your record, expect your car insurance costs to be lower than average. On the other hand, if you’ve been driving for 5 years, had 3 crashes and totaled 2 vehicles, you’ll be expected to pay more (if anyone can insure you at all).
So if you’ve just passed your test and are looking to start driving – take into account some of the things I’ve said. If you’re a young man looking for his first car – maybe it’s wise to look for one with a smaller engine to begin with. Whatever you decide to do – being insured is an essential part of being on the road – so make sure you find a provider that doesn’t charge you too much.