Auto insurance rates are based on:
- Type of vehicle you drive
- Where you live
- How much you drive
- Your driving record
- Coverages, deductibles and limits selected
- Age, gender and marital status
Most states consider your age, gender, and marital status. Insurance companies may also evaluate credit characteristics.
Understanding the coverage you need and the deductibles to which you are entitled helps to give you the best rate.
Rates set by insurance companies are regulated by state laws which means rates vary for each company. Comparing different rates can save you money.
1. Type of Vehicle
Insurers commonly have "vehicle safety ratings" based on data from customer claims and safety reports. Discounts are provided to customers who drive safer vehicles. Premiums may increase for cars more prone to occupant injury, theft or damage.
2. Where You Live
Urban dwellers tend to pay higher premiums than those living in small towns and rural locations due to greater risk of accidents, theft and vandalism.
3. How Much You Drive
The distance a car is driven directly influences the probability of an accident. For this reason, long-distance commuters usually pay more than those who drive shorter distances.
Alternative modes of transport such as using a bike or public transport to get to work could reduce the mileage and lower the premium. Also a car or van pool is a way of limiting mileage.
4. Your Driving Record
Drivers with a history of accidents will generally pay a higher premium than those who don't. Having no accidents for several years will usually safeguard against a high premium.
5. Coverage, Deductibles and Limits
Coverage and deductibles directly influence your monthly payment. Auto insurance companies permit you to include additional coverage which isn't always demanded by state law, and you can select your own deductibles.
A higher deductible usually results in a lower monthly payment; and a lower deductible gives a higher monthly payment.
Greater coverage means additional financial protection, however it will increase monthly costs.
6. Age, Gender and Marital Status
Accident rates are influenced by age and gender. There is a high incidence of accidents for drivers under 25, particularly single males, which is reflected in a higher rate of insurance in most states.
Student-drivers who maintain strong grades receive discounts from most insurers. Certain states provide driver safety courses for younger drivers to help reduce premiums.
Understanding the coverage you need and the deductibles to which you are entitled helps to give you the best rate.
Rates set by insurance companies are regulated by state laws which means rates vary for each company. Comparing different rates can save you money.
1. Type of Vehicle
Insurers commonly have "vehicle safety ratings" based on data from customer claims and safety reports. Discounts are provided to customers who drive safer vehicles. Premiums may increase for cars more prone to occupant injury, theft or damage.
2. Where You Live
Urban dwellers tend to pay higher premiums than those living in small towns and rural locations due to greater risk of accidents, theft and vandalism.
3. How Much You Drive
The distance a car is driven directly influences the probability of an accident. For this reason, long-distance commuters usually pay more than those who drive shorter distances.
Alternative modes of transport such as using a bike or public transport to get to work could reduce the mileage and lower the premium. Also a car or van pool is a way of limiting mileage.
4. Your Driving Record
Drivers with a history of accidents will generally pay a higher premium than those who don't. Having no accidents for several years will usually safeguard against a high premium.
5. Coverage, Deductibles and Limits
Coverage and deductibles directly influence your monthly payment. Auto insurance companies permit you to include additional coverage which isn't always demanded by state law, and you can select your own deductibles.
A higher deductible usually results in a lower monthly payment; and a lower deductible gives a higher monthly payment.
Greater coverage means additional financial protection, however it will increase monthly costs.
6. Age, Gender and Marital Status
Accident rates are influenced by age and gender. There is a high incidence of accidents for drivers under 25, particularly single males, which is reflected in a higher rate of insurance in most states.
Student-drivers who maintain strong grades receive discounts from most insurers. Certain states provide driver safety courses for younger drivers to help reduce premiums.
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