What Affects the Cost of Automobile Insurance?
Auto insurance rates differ greatly from one person to another. Certain things are controllable like the type of car owned, while others are not, such as age. There are ways to get the best value.
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Factors
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Insurance companies rate car owners based on several personal factors including age, marital status, years of driving experience and occupation. Younger and single drivers pay more; lowest rates go to those in the 50 to 65 age bracket. A driver who uses a car for business will also pay more.
Car Type
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An expensive sports car costs more to insure, as does an auto that is popular with thieves. An older, less valuable car costs less.
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Location and Function
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Autos driven and housed in urban, congested areas with high accident rates cost more than those in rural areas. Different rates also apply according to annual miles driven, and whether the car is used to drive to a workplace.
Government Requirements
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Each state regulates insurance and sets minimum requirements for liability and uninsured motorist coverage. These requirements affect insurance rates.
Lower Auto Insurance
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Installation of security devices and use of secure garage parking will lower rates. Discounts go to those that combine homeowner's or renter's insurance with an auto policy. Most important, shop around---rates can be vastly different from one company to another.
Interesting Fact
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Insurance companies also look at credit scores. When a major debt is paid off, make sure to advise your insurer which may reduce a subsequent auto premium.
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References
- Photo Credit Image by Flickr.com, courtesy of Bascom Oswald Hogue
