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Everyone wants to save on car insurance. It is a necessity to have adequate coverage; but, the prices can prove too much for some to bear. Added to this concern is the fact that the pricing scheme is not the same for all. Yes, that is correct. You and a friend could be paying different rates for the same amount of coverage. Is this fair? Well, maybe, maybe not. Insurance companies have to take care of their bottom lines. So, their actuarial staffs do serious number crunching to find out just how much a risk you pose. Only then do they issue a policy. Following are seven factors that can affect your car insurance premium. Use this information to better understand the way companies calculate policy rates and to make changes if necessary.
1. Color
No, the color of your car cannot affect its speed, no matter what you have heard. The old belief that red cars can go faster than others is a mere false myth. However, perception can become reality. Because so many people buy red cars wanting to drive fast or appear to be fast, the color can mean higher insurance rates. Quite simply, when you own a red car, the insurer might take this into consideration. They have no way to know for certain if you are a speed demon or not. However, their job is to consider every possible factor, which includes the chance that you will likely be speeding through traffic on a regular basis.
2. Age
Younger drivers, especially teens, pose the highest risks to themselves and others when behind the wheel. Consequently, insurers charge young drivers more. Nevertheless, those attending college can often receive discounts because car insurance companies may view them as possibly more responsible than their peers.
3. Credit History
If you have a spotty credit history, one full of blemishes, expect to pay higher than those with sterling records. Insurance companies often perceive those who cannot pay their bills as being more likely to drive erratically in traffic.
4. Likelihood of Theft
Unfortunately, thieves target certain models. As you may be thinking, these are usually the cars that are in high demand among consumers. The popular car that you just have to have may result in a higher than average insurance premium. The same applies for those who live in high crime areas. The insurance company will have the crime rates on hand and adjust prices accordingly.
5. Mileage
If you have to drive your car long distances, then the insurer may add to the premium. The fact is the chances of an accident rise the more you are on the road. This is especially true for those who must drive in high-speed urban areas.
6. Driving Record
Each accident and driving violation gets considered when deciding what to charge a motorist for insurance. Avoiding accidents when possible is a sure way to keep premiums low.
7. Car Safety Features
The safety features can play a significant role in how much you have to pay for insurance. A car that has airbags and automatic seat belts can result in lower premiums. Also, size does matter, in this case. The larger your car, the better able it can handle an accident. Thus, you will pay more if you own a dinky little model that has a low crash test safety rating.
Paying Too Much?
Armed with this information, you can now understand why you are paying what you do to insure your vehicle. Do you need to make some lifestyle changes? Some factors above, you can alter right now, as well as taking a defensive driving NY course for a nice discount. Other factors will just take more time.
