What Affects the Price of Car Insurance?

What Affects the Price of Car Insurance?

When you are ready to add insurance to your vehicle, there are a few things to know about the coverage ahead of time, particularly where price is concerned. If the rates you’ve been quoted were more than others that you know, or more than you expected, it is pretty shocking. But, the truth is, there are so many factors that influence the cost of car insurance that no two people will pay the same amount for a policy.

Factors that influence the amount of your insurance includes:

car insurance

–    Age: If you are 25 years old or younger, expect the costs of a policy to increase

–    Type of Vehicle: Although the color of the vehicle doesn’t directly impact the cost, the type of vehicle that you are driving does. A compact car is the cheapest to insure, while sports and luxury vehicles are the most expensive.

–    Driving Record: Take a look at your driving record, and if there are many tickets, accidents, etc. noted and your policy is more expensive than you expected, this is probably why. The more accidents and tickets, the costlier your coverage.

–    Policy Amount: There are many amounts of coverage available for your vehicle. You can opt to use state required overage which is the cheapest policy of all. Or, you can add a different policy and more protection if you don’t mind spending a little more.

–    Insurance Company: There are dozens upon dozens of insurance agencies out there who offer policies but their prices are never the same. One insurance company may charge considerably higher rates than the next for the same exact coverage. It is best to compare the different companies to avoid such a situation.

–    Location: If you live in a big city the rates of your coverage may be more expensive than the rates of people in smaller towns. Your location is always an important factor that influences the rates of your coverage, so do keep this in mind.

–    Safety Features: Have you added any safety features to the vehicle? If so, you might get a nice thank you from the insurance company in the way of discounted rates. Since you are helping the insurance company with the addition of a GPS system and other items, you get rewarded!

There are many things that influence the rates of your insurance policy. Some of the factors you have an influence over, and others you do not. Although you might feel that insurance is nothing more than an added expense to the budget, the truth is that it is so valuable when you need it the most. Compare the prices of policies with a few companies, and take advantage of other methods of saving. When all is said and done you can get a great policy at a great price with a company that you will love. Don’t drive without insurance any more. It is far too big of a risk for you to take!