There are different types of auto insurance policies offered to car owners today. In most jurisdictions, like the US, auto insurance policies are designed to cover financial liabilities resulting from an accident, owing to risk involved while on the roads, motor insurance is compulsory. This implies that any vehicle or driver should have an insurance policy before getting into the streets.
It is a known fact that auto insurance rates are not standardized, which implies that insurers look at various parameters to determine your auto insurance rates. First, the amount of money you pay mainly depends on the type of coverage you need. The nature of coverage helps insurers come up with the base premium, which is not the final amount you pay. Other considerations are factored in to establish the final premium you pay. Here are some of these factors.
Age
Your age plays a significant role in determining the amount of insurance premiums you pay. Most insurers associate youthful drivers with some element of risk. This implies that a driver with 25 years has to pay higher rates than a 40-year-old with the same policy. Adults past 25 years old get competitive rates, but this also depends on many other factors.
Gender
This is often surprising to many, but insurance companies do consider the gender of the driver when calculating the final premium. To your surprise, male drivers pay higher rates than those paid by their female counterparts. This is attributed to the fact that most women tend to be extra cautious on the roads, and this makes insurers see them as less risky than men.
Driving Record
Another important parameter to look at is your driving record. Insurers have to look at things like the number of accidents and traffic violations. As you might have expected, drivers with a clean record enjoy lower premium rates than those with a tainted past. A couple of accidents or tickets might often paint a picture of an unstable driver. Thus, if you are to enjoy some decent premiums, see to it that you keep your driver’s record intact.
Car safety Rating
Some cars tend to be a lot safer than others. Thus, insurers will always be looking at the safety rating of your vehicle. If you have a car with a high safety rating, you are assured that the premiums you pay will be reduced considerably.
