Looking at your monthly bill, you are sometimes wondering why you are paying a large amount of money on your car insurance alone. Two people living in the same location have different amount in their premiums. This is because there many guidelines followed by car insurance companies in determining premiums for specific persons. The calculation may be provided by the state law and/or insurance companies whichever may apply. The fact is, jurisdiction of laws greatly affect premiums.
Here are the bases in calculating premium charges. It may still vary according to jurisdiction but more often than not, car insurance companies have logarithmic computations on the premiums to be paid base on these criteria.
Gender- according to studies decades ago, the number of accidents involving male drivers is higher than those of female drivers. So there is a greater chance that a lady driver will pay a lower premium based on this criterion. However, the gender gap nowadays does not play a very important role in determining premiums but it will still affect even for the minima amount.
Age- teenage drivers will be paying higher premiums. However, there are also available discounts for them. Just by doing good in school will cut an amount to the premium they are paying.
Study shows that the most careful drivers belong to 25-40 years age bracket. Senior drivers likewise are given discounts since it is expected that they are driving lower distances compared to younger drivers.
Marital Status- Married drivers are proven to be more careful in driving than single drivers. Well, the responsibilities they have to their families have a great influence on this basis in calculating car insurance premiums.
Vehicle classification- it is expected that the more expensive your car is, the premium associated with it will be higher as well. Sports car are paying higher insurance premium than SUV’s. The more attractive your car to car theft means a higher amount to be paid for your car insurance. It is then safe to say, the fast and beautiful cars have higher risk in the eye of car insurance companies and of course that would mean a higher premium to be paid.
Distance or mileage- this is the actual miles traveled within a year. So if you travel a lot, expect that your insurance premium will be much higher compared to that of a person who only uses his car from home to office and vice versa.
Even if you are paying high premiums that would not be a reason for you to look for an insurance quote that might be more reasonable than the one you currently use considering the standards mentioned above and of course the coverage that it can provide.
Try to analyze your monthly bill and see if you can still find better insurance in the sense that it is cheaper compared to the one that you have but still provide the same or even better coverage. There are many choices available online, and not only that, there are also discounts available. It’s just a matter of choosing the insurance quote that would be beneficial to your lifestyle.
