If you’ve been wondering why your car insurance costs more (or less) than others, you’re in luck. Discover four key factors that affect your car insurance so you can make better decisions as a car owner.
1. Your Driving Record
Your driving history is one of the first things insurers look at. Good drivers get cheaper car insurance, so you’ll likely qualify for lower premiums if you have a clean driving history. On the flip side, if you’ve been involved in at-fault accidents or have collected speeding fines, you’ll be seen as a higher risk and will probably have a higher rate.
To keep your rates as low as possible, drive safely and obey traffic laws. Over time, you’ll enjoy reduced premiums due to your excellent driving record.
2. Your Car
The type of car you drive plays a huge role in determining your insurance cost. Vehicles with high safety ratings, modern features, and lower repair costs typically get better rates. On the other hand, luxury cars or sports models often have pricier insurance premiums due to their higher repair costs and attraction to potential thieves.
When purchasing a car, consider how its make and model could affect your insurance. If you’re looking to cut costs on your coverage, consider a safer and more economical car.
3. Where You Live
Your location matters more than you might think, and most insurers assess the area where you regularly park your car. If you live in a high-crime neighborhood or a place with heavy traffic, you could face steep insurance premiums. Similarly, dense urban areas with more accidents, theft, or vandalism will see higher rates compared to suburban or rural locations.
If possible, park your car in a garage or secured area to help mitigate some of these risks and potentially lower your premiums.
4. Damage and Repair Costs
If your car is easily damaged or difficult to repair, your insurer will view it as more expensive to cover. For example, filing a windshield repair claim may affect your insurance and result in a higher premium. Also, if your car’s damage risk is higher due to frequent use or location, you might pay more. To show insurers you’re a reliable policy holder, perform regular maintenance and practice safe driving. By doing so, you’ll reduce the likelihood of filing claims.
Drive Smart, Save More
By keeping these four key factors that affect your car insurance in mind, you’ll better understand why your car insurance premium is what it is. Pay attention to your driving habits, choose your car wisely, and take steps to reduce risks where you can and you may just get a better deal on your insurance.
