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Factors that affects your car insurance cost

Date: Aug 21 2009
Filed In: Auto Insurance101

Some of the major risk factors that car insurance companies use when factoring your rate are as follows:

Age: As many reports have shown, drivers under the age of 25 are at greater risk of being in an car accident than those over the age of 25. Remember when you turn 25, car insurance companies starts to consider you as a “responsible adult” and at that age your car insurance cost should drop, unless you have bad driving records. This applies especially for male drivers. The safest group of drivers on the statistics are drivers between the ages of 50 to 65, they have the safest driving records and receive the cheapest car insurance rates.

Gender: In most case, it is true that women pay a lot less money for their car insurance premium than men. They are more keen observers, alert and careful drivers than men. However, in this modern day of age women are now casting off their traditional “stay at home mom” images, the increase number of women involved in car accidents have increase.

Marital Status: When you have a family with children, you are more likely to drive safe. The insurance companies believe that married couples tend to be safer drivers than unmarried people. So you might consider getting married if you are single to save money on you car insurance :) However, don’t get married just to save money on your car insurance, there are other factors your car insurance look for to determine your cost. Even if you are single, you can still save money upon the factors below…

Education: Most car insurance companies will lookup on your credit history, if you have good credit history you will save more money on your car insurance premium than someone with bad credit history. You would want to improve your credit score because you will be paying more for your car insurance premium with bad credit. Try to get a better credit score and keep track of it, you will save more money overall. Now you can always check all your credit cards and many other bank balances online. If you feel you should have a better credit score, you can always get help with a professional credit attorneys for a minimal monthly payment.

Geography: If you live in the area where there are higher rates of car accidents and thefts. Then you will have to pay higher premium rates than other people who lives in the area with lower rates of car accidents and thefts. Also, crime rates around your around has a big impact on your car insurance cost too. The higher the crime rate, the higher premium you have to pay.

Accidents: Having a clean record without DWI’s, accidents and other speeding tickets will also be determine by your car insurance company to determine your rate. People with DWI and other speeding tickets will have to pay higher premium.

Automobile Type: The simple rule of thumb is: the cheaper the car, the cheaper the premium.

Occupation: If you are exposed to a high risk job, you will have to pay more premium. If the distance to your workplace is less than 10 miles to travel one way, then you will get lower premium. Lastly, the total number of miles annually, whether you drive to work or pleasure, have theft protection device installed, own multiple cars and the number of drivers insure in your policy will influence your premium rate.

Education: Many of the car insurance companies will consider your education background. If they check and found out you have higher education you can get lower car insurance premium cost. Remember, don’t just go for big name car insurance companies because there are hundreds of other insurance companies that can provide great coverage and sometime better than the big ones.

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