As a responsible driver, you recognize the importance of having sufficient auto coverage. However, that does not mean you love paying high prices for your monthly premiums. Before you can lower your premiums, you have to figure out what is causing them to rise in the first place.
Here are a few factors that can affect your auto insurance policy rates.
Driving History
Before determining your insurance rates, an insurance company will carefully inspect your driving history. They believe your driving history will predict your future performance on the road. For example, if you have multiple speeding tickets on your record, your insurance company may charge you higher rates.
If you want to lower your premiums, consider taking a defensive driving course.
Yearly Miles
The number of miles you drive every year can also affect your insurance rates. Generally, the less often you drive, the less likely you are to get into an accident. If you do not drive very often, you should ask your insurance company if you qualify for a low-mileage discount.
Credit Score
Your credit rating does not just affect your ability to get loans. It can also affect your auto insurance rates. Since people with lower credit scores are statistically more likely to file claims, insurance companies tend to charge them higher auto insurance rates.
If you work to improve your credit score, you may see a decrease in your auto insurance rates in the future.
Vehicle Type
Before you decide the type of car you want to purchase, consider how it might affect your insurance rates. For instance, that sports car may be fun to drive around in, but you can expect to pay a very high insurance rate for it. If you pick a more practical vehicle, on the other hand, you will pay less in premiums.
Age
Insurance companies also consider a person's age before deciding what to charge them for premiums. Teenagers, for example, will get charged higher premiums because they're inexperienced and more likely to get into accidents than drivers with more experience.
Senior citizens also get charged higher premiums. They tend to have worse vision and cognitive abilities than their younger counterparts, so they get into more accidents.
As you can see, there are a lot of factors that can impact your auto insurance rates. If you have questions about how to lower your premiums, you should get in touch with your auto insurance agent.
