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[A834]Average Auto Insurance Premium

by Joey Hudson, Joe

In many states, automobile insurance is not just an option; but, a requirement. Even if mandated by law, automobile insurance is a good idea. To get the best coverage for your money, provider comparison is key to finding the appropriate policy for the least amount. Comparing as many quotes as possible will provide the best coverage for your money.

Annual costs will depend on driving record, the records of additional drivers, frequency of use and mileage incurred annually. The cost will also be determined by the make and model of the vehicle being insured. There are several methods for finding the best value on your automobile coverage.

Choose a vehicle that is not likely to be the target of theft - Cut down insurance costs by choosing a car that is less likely to be stolen. Newer models have anti-theft devices already installed. For older models, installing an anti-theft system can cut down on your automobile insurance premium costs considerably.

Raise the deductible - The deductible is the amount that you have to pay out of pocket in case of an accident or theft. The higher the deductible, the lower the insurance premium. Most insurance companies will quote a low deductible as if they are betting on you getting into an accident. Bet on not getting into an accident, raise the deductible and lower your monthly premium costs.

Pay premiums annually - Paying insurance premiums on an annual basis, versus monthly or quarterly, eliminates fees and may qualify for an additional discount. Fees associated with paying premiums on a monthly or quarterly basis will be eliminated. Annual premiums will save an average of $100 on the premium.

Good academic grades - Teenagers or college students covered under your policy can help lower premiums by maintaining good academic standing. Most companies offer a lower premium for students who earn a "B" average, or better, and provide added incentive for kids to succeed academically. This could decrease the premium by hundreds of dollars annually.

Avail of safe driver discounts - Avoid moving violations for a year and this may qualify you for a safe driver discount in some states. In other states, two years without violations is required to qualify for the Safe Driver discounts. Maintaining a clean driving record can save hundreds of dollars in premiums on an annual auto insurance coverage.

Get rid of unnecessary collision coverage - If the value of your car is only a few thousand dollars, consider eliminating collision coverage. However, if and when a car is stolen or is involved in an accident, the cost of replacing the car will not be covered. This can be well worth it if the car's value is quite low. Know your liability and safety record when choosing to add collision coverage to the policy.

Many people find it confusing to try to figure out how their car insurance company determines their premium rate. When calculating a driver's insurance premium, companies will factor in a number of variables. These variables are taken into account to establish the overall risk a driver poses to the insurer. The higher the risk, the higher the premium will be.

Variables that auto insurance companies take into consideration when determining a car premium rate include:

Credit History: Auto insurance companies make use of a person's financial history when determining their premium. They look at their credit history, any financial information found in public records, and if any other companies have checked their credit history. This helps the company determine the driver's risk potential. The assessment is based solely on financial data, not personal information.

Driving Record: Insurance companies will check one's driving record check for a history of accidents, traffic violations, speeding tickets, etc. Those with a bad driving record are considered high risk. Premiums will usually be higher for people with a poor driving record. Violations such as driving under the influence (DUI) will definitely increase a premium. Sometimes an insurance company will reject or cancel an insurance policy

Age: Drivers under the age of 25 are considered a higher risk. People who are between the ages of 16 and 18 tend to pay higher premiums because they have less driving experience. People over the age of 65 are also considered high risk.

Gender: Research data shows that young males tend to have more accidents. Their premiums have a tendency to be higher than females.

Type of Car: This can include the age, model, and the value of the vehicle. A sports car will usually have a higher insurance premium. They will also check the number of claims that have been filed with a particular model to see if that model is prone to problems.

Location: Where you live is a variable that insurance companies consider when setting an insurance premium. Urban areas are more traffic congested so the risk of an accident and theft are much higher. Premiums in a populated area will be higher. The place where you park your vehicle is also considered. People who park their vehicles on a street will likely pay higher premiums than people who park in a garage that locks.

Marital Status: Statistics show that car insurance claims among married policyholders is lower than single policyholders.

Additional factors: Other factors taken into consideration include: the number of miles on the car, how much it will be used for traveling, (miles) and if one ever failed to pay their insurance. There are often discounts for drivers who have ant theft devices, have taken a driver training program, have more than one vehicle with an insurer, and if they have homeowners insurance with the provider.

Auto insurance companies use vehicle statistics to determine what factors are considered high risk. When purchasing auto insurance, it is important obtain several quotes so that you know that you are getting the best price. You can be proactive and take necessary steps to reduce the chances of a high premium. Ways of lowering your premiums include decrease the car usage by carpooling or taking a bus, adopt safe driving skills, buy an older car, taking a driver education course, pay your bills on-time, and keep your credit card balance low. A driver's personal situation can differ from others so it is important to be aware of the variables that can affect the cost of auto insurance.

Article Source : Auto Insurance Quotes Canada

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Both Joey Hudson & A Nutt are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

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