posted
by Insurance Assistant
There are innumerable factors that auto insurance companies use to determine how much of a monthly or annual premium their customers will pay. The following are a few of the more common.
Age — The younger you are, the more you are going to pay for auto insurance, simple as that. A 16-year-old male will pay about the highest possible monthly premium imaginable if he were to buy a policy on his own. That is why most teens are added onto their parents’ policies at a discounted rate. Discounts are frequently given for taking driver’s ed, good grades and higher education degrees.
Driving record — Accidents and tickets for driving infractions can boost auto insurance premiums.
Type of automobile — Coverage for that 16-year-old goes through the roof if he is driving a car that causes a lot of damage in an accident (an SUV) or it is one that is listed on crime reports as being frequently stolen.
Type of coverage — The more coverage, i.e. comp and collision with lot deductibles, means higher premiums.
Where you live — Motorists who live in areas where the weather is consistently poor will pay more than other areas.
Maintaining coverage — If you have let your auto insurance lapse more than a few times, it will affect the amount of premium you have to pay.
Miles driven — If you are a traveling salesperson, odds are that you will pay more in auto insurance costs than those who drive less.
There are other factors involved, but these are the basics. It is just cheaper to be a good citizen when it comes to paying for auto insurance.