Auto insurance premiums can set you back a lot. Knowing what factors affect these rates, though, can help you make better decisions when you shop for the right policy:
Year
The older your car is, the more expensive your premiums will be. That’s one incentive to buying a new car, though.
Make
If you drive a luxury model or an import from one of the more expensive makes out there, then expect to pay a ton for your premiums as well. Cars of high-end makes will always cost you more than homegrown ones.
Model
If you drive a fancy number, though, with all the bells and whistles, prepare for sky-high insurance costs. The more expensive your vehicle is, the more your premiums will go up.
Safety features
On the one hand, if your car has safety features like car alarms, locks and others, which could lower the cost of your insurance bills. Let your insurance provider know.
Age
The Centers for Disease Control and Prevention (CDC) reports that car crashes are the leading cause of death for U.S. teens. That’s why insurance rates are higher if you’re younger than 25. The same is true if you’re older than 60. Elderly drivers are at high risk of getting into an accident while they’re behind the wheel. If their health isn’t good, they could succumb to a heart attack on the road.
Driving record
Yes, those black marks on your driving record matter. If you drive like a daredevil on the highway—and your record shows that—insurance companies will charge you more.
Insurance provider
Choosing the right auto insurance provider also matters. Pick one that’s had plenty of years in the field. Do they have an excellent reputation? Do your homework and find out. By considering these factors, you’ll be able to pick out the right insurance company much, much sooner rather than later.
