Understanding what insurers look at when they calculate auto insurance premiums can help drivers find ways to save on their insurance costs. Here are the most common factors affecting premiums:
• Age, sex and marital status – People under 25 years old are more likely to get into an accident, so rates will be higher for young adults. Males and single individuals have higher premiums, as well.
• The car you drive – A Porsche isn’t going to be cheap to insure since fixing it after an accident would cost much more than a typical sedan like the Ford Focus or Honda Civic. Cars that are commonly stolen (such as the Civic or Toyota Camry) might also come with a higher premium.
• Your driving record – Expect to see a premium increase for every violation or accident you have had. Luckily, these only affect premiums for three to five years after they occur.
• Your driving habits – Driving more miles or using the vehicle for business can increase your rates.
• Your coverage limits – Higher limits are often advisable (accidents can be extremely expensive), but they result in higher premiums. A low deductible also raises your premium.
Want to explore more ways to save on auto insurance premiums? Contact Warren G. Bender Co today for information!