Riding safe with lower premiums


What shall be my auto insurance rates is probably one of the challenging questions that cross the mind of individuals eyeing a car purchase. Since, a number of variable and non-variable factors tend to affect insurance rates or premiums largely, it is essential on your part to tread the path with caution. Offering greater consideration, effort, and time while shopping for better premiums and effective insurance policies tend to come across as a wiser move. Running a comparison between the quotes and coverage is deemed essential alongside developing knowledge about the several factors that helps in coming to terms with an affordable quote.

A quick look at some of the variable and non-variable factors can help you derive a better understanding on the factors affecting the insurance rates at large. Let us first have a look at the factors that you owe no control upon while applying for auto insurance –

  • Age of the Applicant – According to statistics individual under the age of 25 is more likely to get into risks and accidents than those above the age. Since, the data is backed by statistics, you cannot do much to lower your premium rates, if aged 25 and under.
  • Gender of the Applicant – Again, statistics tend to block your road in obtaining a lower premium rate, as women are considered safer behind the wheels than men are. Even if you tend to maintain a good driving record, chances of paying higher premiums continues to remain.
  • Marital status of the Applicant – Well, if it was age and gender playing a spoilsport with lower premium rates, now it is time for the marital status to intervene. In case of similar driving record, the married individual gets the favor in enjoying a low premium.

While the above-mentioned factors tend to be something, you do not hold any control while applying for the insurance rates, there are still other factors that can be changed with time for receiving better premiums. Here is a quick look at such factors affecting insurance rates-

  • The area of living – People living in rural area are more likely to receive lower premiums than those living in metropolitan or big cities. Additionally, regions featuring high crime rates also offer higher premiums on individual living in the area.
  • Driving Record – Well, you owe a full control over this factor, as a clean driving record with fewer accidents and law violations tend to bring down your premiums. The more cleaner and safe driver you get with time, the less premiums you get to face.
  • Vehicle Type- Purchasing less expensive cars can open your doors to lower premiums; similarly, a car featuring advanced safety features are also open to receiving lower premiums. Therefore, you can well consider comparing the costs between similar types of car prior to investing.
  • Driving Practices – this might be less known to you, but the miles that is driven each year, the distance covered, and the purpose of using the vehicle comes into consideration while calculating premiums.

Well, keeping in mind the several factors affecting insurance rates, try to maintain a clean and clear driving record alongside changing the factors wherever you can for obtaining a lower premium. Take your steps cautiously.