Car insurance is a fairly major expense for most drivers today, so it pays to shop around for the best rates possible in Pennsylvania. One way to ensure you are getting a good price is to understand the factors involved in determining the cost of car insurance for each individual situation. No two insurance policies are created equal, and there are a number of factors that can affect how hard your insurance will hit your wallet. By learning what these factors are, you can negotiate the best bottom line with the insurance company of your choice.
Age – Your age may not be a factor you can control, but it is certainly one the insurance companies consider. If you are under 25, you will probably end up paying more. This might also be true if you fall into the “senior” category, since older adults also tend to be a higher risk.
Gender – Another factor out of your control, but the sad truth is that men are generally considered higher risk than women behind the wheel. If you are a man between the ages of 16 and 25? Prepare for higher rates and shop around to find the best bargain.
Location – Some states typically charge more for insurance premiums than others. Unfortunately, Pennsylvania cities like Philadelphia rate fairly high. However, by understanding the averages in your specific location you have bargaining power when you shop with different companies.
Driving Record – This one probably goes without saying, but people with clean driving records usually make out pretty well on insurance premiums. If you do get a ticket, find out if you can take a defensive driving course to remove the violation from your record. A day in driving school might make a significant difference in your insurance premiums.
Liability Coverage – States like Pennsylvania require a minimum amount of liability coverage, but some drivers go for larger amounts. Weigh the cost of the coverage carefully to see if you really need more than the minimum requirement.
Deductibles – The higher your deductibles, the lower your insurance premiums as a rule. Switching a deductible from $100 to $1000 might save you a lot of money over a year’s time. However, it is important to make sure you have the $1000 deductible sitting in the bank before you raise the amount, to ensure you will be covered if an accident occurs.
Vehicle – Low profile vehicles tend to cost less to insure than flashy sports models. This is because those sleek models also cost more to repair and replace. Your car may also deserve a discount if it provides particular safety features or anti-theft devices.
Knowing the factors that affect your car insurance premiums will go a long way in helping you shop for the best rate. By keeping these considerations in mind, you can compare similar policies at many different companies.