What Goes Into Determining My Auto Premium?

There are many factors that the insurance companies consider before they can provide you with an automobile insurance quote. The following are some of the basic pre-requisites that go into compiling your required automobile insurance quote:

1.            Age:  Insurance companies prefer older and more experienced drivers.  According to the CDC (Center for Disease Control and Prevention), younger drivers such as, 16 to 19 years olds are in the likelihood of four times more than the older drivers to be involved in a car crash.  The younger the drivers are, the more likely the premium tends to decrease.

2. Type of Car:  Brand new, expensive and fast cars are more expensive to insure than older and slower cars. It is more advised to make sure that the car you are interested in insuring is a high risk car that is, it is often stolen and vandalized.  Car insurance providers often develop vehicle safety ratings by collecting a large amount of data from customer claims and analyzing industry safety reports, and they offer discounts to customers who drive safer vehicles. For instance, in 2004, the 1995 Honda Civic was the most stolen car in the US according to a report released in November 2005 by the National Insurance Crime Bureau.  Discuss this kind of matters with your insurance agent before you select a car. The cost of insuring a car might determine the cost of the car and how much car you can afford.

3.            Driving Record:

Be sure to maintain a clean driving record, which is a main factor for getting a lower rate. People who use their car for business and long-distance commuting normally pay more than those who drive less. Regardless of how safe a driver you are, the chances of a crash can become higher according to more miles you drive in a year. If you have a violation recorded in your driving record, attending a driver’s education class can be very much of a help in reducing your rate. Most of the insurance companies do not tend to insure drivers with very poor driving records.

4.            Credit Score: Yes, that is absolutely right. Credit score. Your credit score is also put into consideration when securing insurance. It is known as an insurance score.  A person can charge a premium in accordance with the risk they are assuming and studies show that the way he manages their finances is a good predictor of the potential for insurance claims. According to statistics, people with lower insurance scores are more likely to file claims.

5.            Deductibles: 


If you are able to save more money in your premium, you will get a higher amount of deductible. That is why it is highly recommended to try to go as higher as you can afford and save more money in your premium. Be careful when you are choosing your insurance deductible.

It is advisory to get more than one automobile quote and compare them because the above guidelines var
y slightly from company to company.

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