There are a number of factors that can influence how much you pay for car insurance. While some are out of your control, there are also steps you can take to reduce your rates and get the coverage that meets your needs.
Your driving record: The more accidents and tickets on your record, the higher your insurance costs will be. A DUI or speeding ticket could increase premiums by more than 20%; similarly, drivers with poor credit or those who’ve let their policies lapse or filed claims frequently (even if they weren’t at fault) may see higher premiums than others.
Credit History: Your credit score can play a role in setting your car insurance rate depending on where you live. Most companies will review your credit score, and low or bad scores may result in higher premiums. Fortunately, some companies offer more concessions for drivers with poor credit than others.
Your Vehicle: The make and model of your car will determine how much you pay for car insurance. Sports vehicles and luxury models tend to be costlier to insure than other types due to their greater potential for accidents or thefts.
Age: Drivers under 25 tend to have higher insurance costs than older motorists due to being more likely to get in a crash and having less experience behind the wheel.
Coverage Amounts: The more coverage you have, the lower your premiums will be. That means if you opt for comprehensive insurance instead of just basic, then it could end up costing more but provide you with more options when filing claims.
Where You Live: The risks of accidents, vandalism and theft vary between rural and urban areas, leading to differing insurance rates. For instance, a driver in Philadelphia might pay more for car insurance due to the greater number of cars on the road than someone living in a small rural town.
When choosing your insurance deductible, remember that while a higher deductible will save you money on monthly premiums, it also means paying more out-of-pocket in case of an accident. For high risk drivers, however, it may be beneficial to pay more out of pocket and opt for a lower deductible.
Other Things to Consider:
Car insurance rates can be highly complex and nuanced, so it’s wise to shop around before purchasing a policy. Request quotes from various companies and each will request personal information in order to create an accurate quote for you. By taking time to provide as much accurate and honest data as possible, this will help ensure the most precise quote possible and prevent overpayment for car insurance.