Most people are aware that their driving record and age are important factors that are used to calculate their auto insurance premium but many people do not know that there are a few other factors that are also used to determine the amount they will pay to the insurer. This article will help you understand four variables that play an important role in determining your auto insurance premium.
The Speed You Drive at Will Determine Your Premium
If you thought that driving slowly helps you save money then you are correct. Driving slowly not only helps you save on gas money but it also helps you save a significant amount on your auto insurance premium. Your car’s mileage will also determine your premium. Cars that give a higher mileage per gallon gas will be insured for a lower amount compared to cars that guzzle gasoline. The number of miles you drive every month will also be used to determine your premium. People who use their cars a lot are often asked to pay higher premiums compared to people who use their car lightly.
Your Marital Status is an Important Variable
People who are married are considered to be safer drivers than people who are unmarried since married people have a family to look out for. Vehicle insurance companies believe that single people are more likely to commit violations and get into accidents as compared to married people. Your age is also taken into account when your premium is calculated. If you are under 25 or above 65 then you will be asked to pay more as compared to a person who is between 25 and 65 years.
Your Geographic Location Is Also Used to Calculate Your Premium
Your location is also used to determine the auto insurance premium you will pay. If you live in a crowded area, if you drive in a busy street that has traffic jams or if you park on the road then you will be asked to pay a higher premium compared to people who live, drive and park in safe areas. If there have been many incidents of theft and vandalism in the area you live in then your premium will be affected by these factors. If you are interested in paying a lower premium then you should consider parking in garages instead of the street.
The Modifications in Your Car Will Determine the Amount to be Paid
The type of modifications used in your car and the number of modifications used will determine the amount you need to pay to the insurance company. People who have unnecessary modifications like modified wheels, modified bumpers, modified tires and modified lights are asked to pay more since these modifications cost money to replace. Some auto insurance companies refuse to insure cars that have too many modifications since the companies believe that too many modifications can alter the performance of your car. People who have necessary and helpful modifications like a theft alarm or automatic seat belts are asked to pay a lower auto insurance premium since these modifications aid in driving safely.
Other factors that are used to calculate the amount you need to pay to the insurers include the model, make of your car and your credit rating. If you want to get a low quote then you should consider comparing quotes with 3 or more insurers before signing the agreement.
