When you decide it’s time to purchase a car, one of the most important things on your checklist is getting the best auto insurance rates. You start to shop around for quotes, whether you’re going for Progressive, Geico, or Statefarm, you’re looking to get the best possible deal.
Factors that can affect your auto insurance rates
While going through quotes and seeing who can offer you the best deal, it is important to keep in mind that your car’s auto insurance rates are not just based on the company you choose. Sure, there are some that offer more discounts than others, but there are other very important factors that impact how much you will pay for auto insurance.
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Age
- Your age plats a huge factor in your car insurance premium. For example, teens pays the most when it comes to auto insurance. It is usually more beneficial to have parents add their teenagers under their own insurance policy as opposed to separate auto policy. As you grow into your 20s and 30s, auto insurance rates tend to drop. Insurance rates tend to start going back up after you reach the age of 70. You may also want to check to see if your state bans the use of age as a rating factor.
Gender
- Believe it or not, gender does play a role in auto insurance rates. Males usually pay higher rates than females because of increased chances of getting into accidents and more severe accidents overall.
Vehicle type
- The type of vehicle you drive can also determine how much you will pay for auto insurance premium. For example, if you’re driving a Toyota Prius, it’s likely you will pay less than if you were to insure a Hummer. Take this into careful consideration when purchasing your next car because it may affect how much you pay for insurance.
Credit rating
- Many seem to forget that credit scores can have a big impact on your insurance premium. A driver with low credit scores tend to file more claims than drivers with high credit scores. Due to the increased risk, insurance companies will charge more to insure those with low credit scores. It’s important to note that not all states allow credit to be used as a factor for your rate, so make sure to check.
Insurance history
- Drivers who have continious auto insurance coverage will likely pay less than those that have lapses in coverage. Drivers that have no insurance history at all will pay even higher.
Driving record
- Your driving record also plays a huge factor in determining your insurance premium. If you have tickets, accidents, or DUI convictions on your record, be prepared to pay more for auto insurance premium.
Levels of coverages
- Auto insurance coverage have differnt levels. Depending on how high or low coverage you’re seeking will determine how much you pay. Higher levels and more optional coverage tend to cost more than standard coverage most insurance companies offer you.
Discounts from auto insurance companies
- Auto insurance companies offer discounts regularly. Whether you’re a college student, have a pristene driving record, or you have take defensive driving to qualify for additional discounts, these will help lower your monthly auto insurance premium.
You could potentially qualify for even more savings if you’re married. If you are a veteran or a member of the military, there could be specialized discounts of less expensive coverage options available. It is best to reach out to an auto insurance agent or find quotes online with specific details.
Keep in mind that auto insurance rates may differ from company to company, so you could pin different providers and quotes against each other to get the best possible deal.
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