If you are looking to change your car insurance because you are paying too much, then you should definitely learn what the actual costs are. You can definitely save money when you shop around and search online through a comparison site like Cheap Insurance as there are always great deals to be had. After all, insurance companies love to poach customers from other companies.
There are a lot of factors that go into what you pay for car insurance. Some you can control, and others you can’t. When you understand these factors, then it becomes clear just what you’re paying and what you can do about the costs. In this article, we will go over what those factors are so you can then find the best auto insurance for your situation.
How you drive
The most obvious factor that goes into how much you pay for car insurance is how you drive. If you are involved in accidents and get a lot of moving violations then you are paying far more for insurance than you normally would.
The longer you can go without any accidents or violations the lower your premiums will be. Every year your points will decrease so it literally pays to be a safe driver.
Where your car is located
The location also plays a big part in your premiums. There are a lot of metrics about the area that an insurance company uses to determine the cost due to where you live or where your car is kept.
For instance, an area with a lot of accidents will cause your price to be higher even if you are a good driver since it is more likely that you’ll be in an accident. High traffic areas are usually places that see lots of accidents so it will cause your insurance to be higher than if you lived in a rural area with little traffic.
Where your car is kept parked also has a bearing. Street parking means more risk of an accident so a higher cost. If you park your car in a garage then your insurance will be lower.
Age and gender
Younger people tend to drive more aggressively or are driving while distracted. They often are listening to music or talking to friends while they drive. This makes young people more likely to get into an accident or to get a traffic violation. Even if you are not doing any of those things, your insurance is higher simply because your peers are.
As you get older your insurance will go down as a result of fewer violations and accidents and also because older drives are less of a risk. The other side of that coin, however, is elderly drivers are at a higher risk of accident so your insurance may go up once you hit 65 years of age.
Women typically are more cautious drivers so they often pay less in car insurance as a result. With all things being equal, a woman will often pay less than a male.