Most of the time, we worry about our car insurance premium. We are wondering why we are paying for high premium while in fact other people that we know don’t. It is always a good idea if we have a background on how insurers compute for specific premiums. Here are some of the simple factors that affect our auto insurance policy premium.
Age is the number one factor. This means that a new driver will pay more that that of a well-experienced one. This is because of the fact that there are many accidents that involves new drivers or teenage drivers. These incidents gave policy providers a warning that young drivers are considered higher risks compared to older ones. But that would not let teenage drivers with no option at all. They can find discounts and all they need to do is scrutinize available online quotes for young drivers.
Second factor would be the type of car that you are driving. It is a fact that a driver would want to be in front of a fancy car’s steering wheel. Well, sadly, expensive cars are coupled with higher premium. Why? There is a greater risk of it to be involved in an accident since it is light and fast. Older cars will have lower premiums and this is because expensive cars can easily catch the attention of car thieves and this is another risk that is associated with nice and fancy cars.
The average distance that you travel computed within a year or your mileage also affects your car insurance premium. The lesser distance you travel, the lesser the payment would be. This is because you are less likely to be involved in a mishap. There are simple ways to lower this. Try to commute on public utility vehicle if you travel a lot. This would lower your premium since the distance travelled by your car would be lessened.
Another factor that can affect auto insurance premium is your sex. Well, expect that lady drivers will get a lower premium than males since according to studies; women are less likely to be involved in car accidents since it was found out that they drive more defensively than male drivers.
There are other factors that are being considered by car insurance companies but with the array of choices that we have today, we can find the cheapest car insurance by simply comparing quotes from them. That is the advantage that we have since many insurers are offering discounted premiums for everybody.