When you decide to purchase auto insurance, several factors would decide how much the insurance would expect you by way of monthly premium payment. Each factor is analyzed through a statistically based risk potential. For a higher risk in each factor, the premium would be increased for the auto insurance coverage. If you have a lower risk, automatically the insurance premium would come down proportionately. Hence, you should understand the importance of each factor that plays a role in the decision of your auto insurance premium. Certain factors could be changed by you but a few other factors could be easily controlled to improve your chances of influencing lower insurance rates.
Factors that Could Not Be Changed
Age is one factor that you could not change. However, if you are under the age of 25, you should expect a higher insurance premium every month, because the insurance companies hold persons under the age of 25 as high risk individuals. The exuberance of the youth leads to reckless and negligent driving, coupled with over speeding just for the thrill of it. These things are a dangerous combination and statistics reveal that persons below 25 are involved in more accidents than people in other age groups. The insurance rates would come down as you mature and grow old. The insurance companies charge the lowest rates for persons between the age of 50 and 65, since they are considered as the safest and most responsible drivers, who would not take any undue risk. Still, the insurance companies would decide on the rates for persons in this category based on their health condition and eyesight.
Similarly, married persons are held by insurance companies as more responsible drivers than single persons. Occupation is another factor that is taken into consideration by the insurance companies. A bank employee, who would sit in the office the whole day, and would drive only to and fro to the office, would be considered a much lesser risk than a call taxi driver, who would be on the road most of the time. The exposure to accident is minimal in the case of the former, while it is statistically quite high for the latter.
Factors that Could Be Changed
If you really wish to have low auto insurance rates, you should take care that your driving record is as clean as possible from the day you obtain your first learner license. You should avoid accidents as much as possible and keep away from traffic violation tickets. You might become involved in an accident due to the fault of another driver. You should obtain records of such incidents and submit them as proof that you are a responsible driver and not the cause for the accidents that you had been involved with. This would definitely impress the insurance companies.
Finally, you should select a car that is not considered very costly by the insurance company. The costlier the car, the higher the maintenance and the higher replacement cost if the car is totaled in an accident. This is a crucial factor in the calculation of the auto insurance rates by insurance companies.
