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Factors that Affect Your Car Insurance Premium

Factors that Affect Your Car Insurance Premium

You could be given a similar-priced car insurance policy quotation from many automobile insurance firms if you’re looking for cheap auto insurance premiums. Many individuals want to cut their automobile insurance premiums, but they are unsure how to. The truth is that the majority of motorists are unfamiliar with what influences the cost of a policy premium.

If you’re unfamiliar with how auto insurance premiums are determined, you’re not alone. Many individuals are perplexed as to why automobile insurance is so costly. The fact is that there are many factors that influence your auto insurance premium. Here are some of the most significant elements that impact the overall cost and price range of your car insurance.

Personal Factors

Things like age, marital status, occupation, and sex all play a role in determining your insurance rates. For example, younger drivers and unmarried men are more likely to get into an accident and file a car insurance claim. This is due to the fact that young drivers lack experience and single people, in general, are the only ones driving their car, thus raising their chances of an accident.

Your Car

If a car lacks essential safety features like anti-lock brakes or airbags, such as on the new Acura ILX, their absence will have an impact on your premium. Additionally, higher-end cars or those with rare parts are costlier to insure since parts are typically more expensive than typical automobiles. In addition, luxury cars have more of a risk of being stolen than small cars. To save money on your auto insurance premiums, get a car with a good safety rating and anti-theft features. It might be costly in the beginning, but you’ll save more money down the road.

Place of Residence

Your zip code and its corresponding crime rates will have an effect on your premiums. Higher crime rates lead to higher premiums.

What The Car is Used For

If you travel long distances on a regular basis, your insurance premium will be greater than that of individuals who only drive their automobiles for weekend excursions. The fewer miles you drive annually, the lower your insurance premiums will be.

Deductible And Coverage

As a general rule of thumb, the higher your deductible (the amount you pay in the event of a claim before the insurance company pays out) then the lower your premiums will be. The different types of coverage you add to your policy will also increase your rates.

Credit History

A clear indicator of your risk is shown in your credit score. If you’ve kept a clean record of paying your bills and repaying debts, insurance companies will be more inclined to give you a lower-cost insurance plan.

Driving Record

If you have a traffic violation on your driving record, you will pay more for auto insurance. Driving records are permanent. If you keep clean, your previous driving infractions will have a lesser influence. You’ll notice that your insurance cost decreases over time as long as you drive safely and avoid collisions.

Speak with an Insurance Navy agent today to see how you could get an affordable car insurance quote today. Insurance Navy helps drivers get the best, low-cost insurance for their vehicle. Request a quote today, either online or over the phone, at 888-949-6289. We also provide assistance in person at all of our storefronts. Reach out today and get driving insured tomorrow.

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