Auto insurance rates are based on many factors and each insurance provider will have its own system of determining the premiums. The auto insurance quote will be provided based on the information you give them. The rates will be set based on this information. A few factors that determine your auto insurance rates are listed below:
- The type of car you drive will determine the rate – the more expensive the car that much more would be the insurance premiums that you will have to pay. This is because of the higher costs that would be incurred in the event of an accident. Sports vehicles usually cost more to insure because these high performance vehicles would obviously be driven at higher speeds and could cause bigger damage in case of an accident. Convertibles generally cost more to insure than an equivalent version without an open top. Vehicles that are fitted with safety equipment and safety devices and gadgets will carry lesser premiums.
- Vehicles that are more likely to be stolen would also carry higher premiums.
- The location you drive your vehicle and the place where you park your vehicle also is considered while deciding the rates. If the locality is more prone to theft, riots, vandalism, accidents etc then the premiums would be high. As a general rule, those living in rural areas and small towns will pay much lesser when compared to those who dwell within the urban limits. There are a few hot spots where vehicle thefts are common and the National Insurance Crime Bureau maintains a record of those.
- The more time you spend on the road, that much higher will be the premium. The distance you cover every day will also be another factor to consider. The more you drive, the higher the costs.
- Having many years of driving experience helps in cutting down costs.
- If you have a history of accidents or DUI, it can affect your premium adversely. These are indicative of a high risk to the insurance provider and they will charge more on premiums.
- Having a good credit history helps in many ways. Insurance companies use your insurance score that is got from your credit history. Not having current insurance will attract higher premiums.
- The coverage you purchase and the deductible you pay will play a major part in hiking or lowering your premium.
- Shop online for policies and avail discounts. You will save money on insurance rates.
