Many factors affect the price of an auto insurance policy, and these same factors help calculate the chances of having a car accident. According to the Insurance Information Institute, these factors are:
Driving record: the better the record you have, the lower your premium. Avoid traffic violations, accidents and tickets. You may also pay more money if you are a new driver or if you haven’t had any vehicles.
Usage of the car: the more miles you drive, the higher the chance of having an accident. If the person uses his car for work or drives long distances in order to get to work, he will pay more than, if he just uses his car occasionally.
The place where you live or where you keep your car at night: depending on the place where your car is parked overnight may affect your insurance policy. If there are higher rates of vandalism and accidents and if it is an urban zone, then the cost may go up. You can also consider the weather conditions and repair costs.
Driver’s age: experienced drivers have fewer accidents than new drivers, especially teenagers. A driver’s experience is always important. Insurance companies charge more to younger/new drivers.
Male or female: statistically, women tend to get into fewer accidents, have fewer cases of driving under the influence (DUI) and have less serious accidents than men. These facts in addition to the driver’s records will also affect your policy cost.
The car you drive: the cost of the insurance depends on whether the car is more likely to be stolen, cost of repairs, cost to replace and the safety characteristics and performance of the car. In addition, the engine size may determine the cost of the premium. The insurance company will also consider if your car has a higher chance of inflicting damage when in an accident.
Your credit: driver’s credit score is a statistical tool that predicts the likelihood on your filing a claim, which represents a positive or negative impact in your insurance policy.
Type and amount of auto insurance coverage: in almost every state of the country, it is mandatory to get liability insurance for a minimum cost. The recommendation for the driver is to get an insurance policy for at least ten times more than the minimum required by state law.
Remember these factors in order to get the best insurance policy for your vehicle.
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