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Ignored factors that affect the rates of auto owners’ insurance


There are several factors that affect auto owners’ insurance but are often ignored. Some are out of the auto owners’ control while some can very much be used to get valuable discounts. At the end of the day understanding these factors will allow automobile owners’ to make more informed decisions when it comes to purchasing coverage for the cars.

The state and the nature of the roads

This will allow the automobile owners to make better budgets, although this is out of their control. The automobile insurance rates vary from state to state depending upon the rules. Other factors that affect the cost also include the number of vehicles on the roads and the nature of the roads itself. Moreover, when the weather and bad road conditions combine to cause more accidents, one can expect higher premiums for auto insurance coverage.

The type of car you pick

Very few car owners actually purchase vehicles considering the auto insurance that they will have to pay. But if you are one of those who wants to save money over a longer period of time you should go for family sedans with less expensive spare parts. SUVs and expensive imported models always lead to costly insurance coverage because their damage repair costs in case of accidents are very high. Moreover, you can lower your auto insurance by making your car safer. Anti theft mechanisms, burglar alarms, side air bags, navigation control and alert systems will all help you to avert thefts and road accidents. This will lower the chances of your making auto insurance claims, thereby reducing the premium on your coverage as well.

The nature of the driver

Car owners have to pay the cost for their own track record. If you have a very good credit history combined with excellent driving record without any violations in recent years, then you can look for large discounts on your auto insurance. Those with good credit history and good grades in college are expected to be less reckless on the roads too. This leads to lesser accidents and lesser claims. Hence the premium goes down as well. If you haven’t jumped signals recently or haven’t really been caught over speeding, you will get a discount on the premium because you are a safer driver. If your mileage is low and you are used to car pooling and public transportation, you can get a discount too.