Factors That Affect Your Car Insurance Rates

Written By: Slade Tanner on June 12, 2010 No Comment

With the challenging economy more and more people are trying to cut expenses out of their budget. Many look to their auto insurance as a way to save a few bucks. In order to cut your car insurance expense you need to know what factor determine those rates.

Here are a some factors that determine your auto insurance rates:

Who are you? – Who you are affects your insurance rates. If you are under 25 then you will pay more than someone over 25. Younger people are more prone to tickets and accidents so insurance companies naturally charge them more. Drivers in their 50′s and 60′s are the safest group of drivers on the road so they end up paying less in insurance.

Your gender no longer plays a huge role in rates. More and more women are driving then in the past and they are just as big of a risk as men.

Are you single or married? With all else equal a married person ends up paying less in auto insurance than a single person. Statistically, married people have fewer traffic infractions and car accidents than single people so naturally insurance companies will charge them less.

Where do you live? – Where you live plays a role in determining how much you pay in insurance. Someone who drives daily in New York City will end up paying more in insurance than a person who lives in rural North Carolina. Rural drivers are less likely to get into an accident as well as a smaller chance of theft or vandalism.

Driving Record – Are you a good driver? If your driving record is clean then you will get a discount on your rates. If you were an insurance company who would you rather insure? A person with 4 speeding tickets and three auto accidents or someone who has never received a speeding ticket or been in an accident? If you want to enjoy lower rates then drive more carefully and maintain a clean record.

What kind of car do you drive? This will affect your insurance rates. Variables such as price, make, model, year, safety devices and mileage can increase or decrease your rates. Common sense will tell you that insuring a brand new corvette is going to cost more than insuring a 20 year Ford Mustang.

Finding Cheaper Car Insurance:

Before buying or renewing your current auto policy shop around. You can shop on the internet, contact your local insurance agent or call the 800 number of a large carrier. Don’t assume all companies are going to charge you about the same rates. You might find some large discrepancies.

There are many websites available where you can comparison shop by getting multiple quotes from various insurance companies. These are particularly useful.

Sometimes it is nice to just deal with someone in your own home town. You may want to contact your friendly neighborhood insurance agent to help you with the process. They might be able to save you a few bucks here and there. If you ever have to file a claim it is probably easier to do with some locally than calling an 800 number.

Slade Tanner – Cheap Tampa Car Insurance