There are different factors that affect your auto insurance premiums. Age is one of them. Those whose age fall under 20 years and below and those who fall under 65 years old and above age bracket are considered to be under the “risky driver” category. This is because drives that are too young are commonly reckless and drivers who are a little bit old are seen to already have deteriorating reflexes. These contributing factors make both age groups given a high insurance rate by providers.
Another factor that greatly affect insurance rate is the type of vehicle a motorist drive. Luxury cars, sports car, and other high performance vehicles have higher insurance rates than mini vans or ordinary cars. The rationality behind is because in case of accidents; the car insurance need to pay more because luxury cars are expensive by nature. Not to mention the fact that these fast cars are always the target of car thieves.
One more important factor is the driving history of policy holder. Keep in mind that this is the factor you need to polish if you want a low cost auto insurance rate. Car insurance companies consider a possible client’s driving history and base their car insurance premium from there. So if you want to lower your premium, you simply have to keep your record clean.
Gender is also a big factor that car insurance companies take into consideration. Being a male or a female can greatly affect your auto insurance premium. This is due to the reason that statistics will tell you that most road accidents often involve males. Either due to hormones or their ego, males are known to be fast drivers making them accident prone. Aside from that, males are also known to have the tendency to drink and drive, again making them vulnerable to violations and road mayhems.
On the other hand, females often receive low car insurance rates more than males because they are seen by auto insurance companies as “careful drivers.” Females usually follow traffic rules and drive at a slower pace than their male counterpart. Female drivers also have the reputation of driving at short distances only making their tendency to be involved in accidents low. These characteristics of female drivers make them candidates for cheap car insurance.
If a motorist is knowledgeable with regards to the factors that affects their car insurance rate then he will have the control to lower it.