Paying a Premium Price for Auto Insurance?

It’s very easy to simply stay with the same car insurance company and assume that they are giving you the best rate. The reality is that our individual circumstances change all the time, whether it’s as simple as getting older or getting married. Change is inevitable and we need to be aware of how that change can affect our auto insurance premiums.

Here are some areas of our lives that play a major role in determining how insurance companies set our premiums:

1. Single male and 25?

- If you’re between 16 and 25 years of age, statistically you’re at greater risk of an accident than older drivers, who are assumed to be more experienced and careful. Accidents involving younger people also tend to be more serious. Statistics also show that women tend to drive less daily average distance and have lower number of reported accidents than men. Statistically, married drivers have fewer accidents.

2. Older or new model?

- Insurance companies rate cars based on the claims history of that vehicle. They look at things like accident frequency, repair costs, theft, vandalism and safety ratings for each make and model.

3. Good driver?

- If you’ve had a significant number of tickets or have lost some points, you may have no choice but to be insured with a company that is known for taking on higher risk drivers and you'll be paying dearly for that.

4. Just need it for groceries?

- How often you’re in your vehicle and where you drive (city or country) will be factored in when it comes to your car insurance premium.

We all know that driving a car can be for some of us a necessity but an expensive one at that. We can have some measure of control over how much we end up paying for car insurance.