5 Notable Factors That Affect Your Car Insurance Premium

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Did you know that in 2021 the average cost of a car insurance premium is about $139.50 per month? That adds up to $1,674 for a full year.

There are several factors that affect your car insurance rate. If you’re having trouble finding cheap car insurance it might be because of your vehicle or driving record.

The following guide will explain the factors that an auto insurance company considers when setting rates. Read on to learn a few ways you can obtain lower car insurance payments.

1. Your Driving Record

Moving violations and drunk or reckless driving convictions on your record will raise your premium. These black marks on your record can end up costing you thousands more for insurance each year.

Insurance companies also find out if you’ve been involved in any recent accidents that were your fault. You will often have higher payments for several years if you cause a crash and your insurance had to pay for the damages.

2. Car Insurance Premium Based on Age

Very young or very old motorists are often involved in more accidents than middle-aged drivers. Car insurance typically costs hundreds of dollars more each year for young drivers and senior drivers.

From age 16 to about 30 your insurance rates will gradually lower. From age 30 to 65 the rate will stay about the same but will start to increase after 65.

3. Your Location and Gender Can Affect Rates

Some states prohibit insurance companies from considering gender in their prices. Although, other states still allow gender to be factored in.

Men have higher premiums in some areas because it’s thought that they are more likely to be in accidents and not wear seatbelts. However, companies in other areas charge more for women.

Your location also plays a role in prices depending on the crime rates and traffic in the area. If you live somewhere with lots of theft or auto accidents it will increase your premium.

4. Your Vehicle Type

More expensive vehicles usually cost more to insure because damages would cost more to fix. Cars like sports cars also cost more to insure because the drivers are more likely to speed and drive recklessly.

If your vehicle has modern safety features that reduce the chance of accidents and injury it will often lower your payments. Anti-theft features, anti-lock brakes, and airbags all reduce insurance premiums.

5. How Much You Drive

The chances of getting in an accident increase with how frequently you drive. Insurance companies typically offer lower rates to those who put fewer miles on their vehicle.

If you work from home it might lower your rates but if you have a long commute each day it could raise your rates. This guide to auto insurance will help you further determine the right choice of insurance for your lifestyle.

Ready to Lower Your Premium?

Now you know there are several ways to lower your car insurance premium and several factors you can’t control. You can’t control your age but you can choose your vehicle wisely and always drive responsibly.

Check out our blog for more helpful auto tips and information.