Most car owners are aware that their driving record is one of the most important factors that can affect the amount of auto insurance premium they pay but many car owners are not aware that there are other important factors that can lower or increase their car insurance premium. The following paragraphs will elaborate on 3 factors that can influence the amount of premium you pay to auto insurance companies.
Your Age and Sex
The age of a driver is a very important factor that can affect his or her auto insurance since insurance companies believe that drivers under the age of 25 and above the age of 65 are much more likely to get into an accident. People under the age of 25 are often charged a higher premium since they are much more likely to participate in reckless road behavior while people above the age of 65 are more likely to make mistakes on the road due to their age.
Insurance companies also believe that women are less likely to commit violations or get into accidents on the road than men so women are charged a lower auto insurance premium. If you are nearing the age of 65 then you should opt for a healthy diet, reduce risky behavior and improve your lifestyle so that the premium of your vehicle insurance policy is not increased by a large amount.
Your Marital Status
The marital status of the driver is yet another important deciding factor for vehicle insurance companies. According to statistics single drivers are more likely to get into an accident as compared to drivers who are married. Newly divorced people are also more likely to be charged a higher premium but other factors like their new residential address will also affect their premium.
Some insurance companies may also cancel insurance for newly divorced people if the policy was a joint account in the name of the husband and wife. If you are married then you can save money on auto insurance by insuring your car and your spouse’s car from the same insurance company. You can also save money on vehicle insurance by insuring your home and all your cars with the same insurance company.
The Place You Live
Car owners that live in safe neighborhoods often pay a lesser premium than people who live in unsafe neighborhoods since the chance of auto theft of auto vandalism is lesser in safe neighborhoods. The place you park your car will also affect the amount of premium you pay every year. Car owners who park their car on the street are more likely to pay higher premiums where as car owners who park their cars in garages are more likely to be offered a lower premium.
The driving route you take every day and your car’s mileage are two other factors that will determine the amount of premium you pay. Car owners who drive through busy roads that have a lot of traffic will be asked to pay a higher premium compared to people who drive through non congested roads. If your car is used a lot then the insurance company will ask you to pay a comparatively high premium and if you drive at the maximum speed then you will be asked to pay a high premium.