8 FACTORS THAT DEFINE YOUR CAR INSURANCE PREMIUM

Numerous factors can affect the cost of your car insurance premium. Most of them are out of your control, but others can be swayed by being a good driver, and by keeping up with everyday bills and needs. Insurance companies may use slightly different qualifying factors, but the basic ones are listed below.

1. Age-This is one of the biggest deciding factors when it comes the price of your yearly car insurance premium. If you are under 20 your premiums will be higher. Once you hit this age the cost will go down, and again at 25. The mid 50’s you get a decent cut on costs, and then when you hit 70 it starts to go back up.
2. Gender-Many policies will charge less for female drivers. It is shown on reports that women drive safer and make better choices when driving.
3. Location-Your location makes a big difference on premium costs. Each State and zip code has different amounts set as a rule. The insurance agent must follow these guidelines for each specific area.
4. Credit Score-Many people overlook this when getting an insurance policy. If you have bad credit, under 540 for most companies, you will have to pay a much higher premium. This is another reason why it is important to budget, and manage, money and bills very carefully.
5. Driving Background- Bad drivers pay more, that is why some companies offer a device for you to add into the car to monitor your true driving habits. Any claims that you have will be held against you, so if you get into an accident that is minor it may be better to fix the vehicle yourself without turning it in to the insurance claims department. How long you have been driving is also factored into the price.
6. Insurance Information- If you have had car insurance without any gaps in coverage the agent will give you a better risk rating, especially if you have no tickets or accidents. The type of insurance that you are trying to get, along with the deductible amount, will show in your premium. The higher that the deductible is set, the lower the cost will be. Discounts that can be applied to your account will also be a factor. Be sure to ask about these because many agents will not volunteer any information that could save you money.
7. Annual Mileage-The amount of mileage that you drive in a year affects the cost of the coverage. The more you drive, the more likely it is that something could happen. Whether it is an accident, or a ticket, more time on the road can lead to more issues that could cost the insurance company money in claims.
8. Vehicle-The type and age of the vehicle is a big part of the insurance premium cost. A sports car or an SUV will cost more than a small economical vehicle that is loaded with safety features. Therefore, older cars can cost a decent amount to insure because they usually do not have upgraded safety features.

The 8 factors above define your car insurance premium. Every company is different in pricing, coverage, and what their deciding factors are. Be sure to check more than one company by calling around or using a portal such as iselect that can do the leg work for you. In the end, each company will offer various things and you need to decide what policy is right for you.