There are a lot of factors that can effect the amount that you’ll pay for
your car insurance (also known as your premium.) Some of them cause you to pay
a higher premium than others, and others entitle you to a lower premium. If
you’re applying for a new policy, expect your insurance company to check all of
these factors before making a decision; if you’re renewing or changing a
policy, they might check some of them or they might not.
Who you are and what you drive.
Insurance companies look at statistical averages to try and judge what type
of a driver you’ll be. If the statistics say that people of your age, gender,
or race are better drivers, then you will stand a good chance of getting a
lower premium. If the statistics tell a different story, then you can expect to
pay a little bit more. The same goes for the area that you live in, as well as
the car or truck that you drive. (Sometimes, even the color can be a deciding
factor…drivers of certain car colors at least have a reputation of being more
reckless and speedy than others.)
The amount of coverage you want to buy.
Obviously, if you want full coverage insurance you’re going to pay more than
if you just purchase basic liability. On the flip side, if you have several
vehicles covered by a more expensive insurance with the same company, some
insurance companies will actually offer you discounts (as somewhat of a loyalty
incentive.) Check with your insurance agent to see of their agency offers any
sort of discounts for multiple vehicles at a certain coverage level.
Who’s driving, and how they drive.
Another big thing that will be looked at when buying car insurance is your
driving record (as well as the driving records of anyone else who will be
covered by the policy.) Along with the coverage level that you’re buying,
driving records are actually one of the biggest factors in determining exactly
what your premium will be. If you have a clean driving record, you should be
eligible for “good driver discounts”, which is a reward for driving safely and
obeying traffic laws. If, on the other hand, you have multiple speeding
tickets, traffic infractions, and accidents (especially in a short period of
time), then there’s a good chance you’ll be looking at higher insurance rates
(and possibly trouble finding an insurance agency that will cover your car or
truck.) Teenage and young drivers also face increased scrutiny, and usually pay
much higher rates for car insurance than drivers over the age of 25. Good
grades, driver’s education classes, and other programs that vary from company
to company can reduce the amount that young drivers have to pay, however.