For car insurance, you pay one amount, your best buddy pays another, and your neighbor pays yet another. What’s going on? Most insurance companies look at several key factors to calculate how much you’ll end up paying for your car insurance.
To clear things up, take a closer look at these factors that affect your auto insurance premiums — some of them even provide additional cost-cutting tips.
Learn about some of the factors that influence vehicle insurance premiums so you can figure out how to save money

HOW IS YOUR POLICY WRITTEN AND WHAT’S YOUR DEDUCTABLE?

The specifications play a part in your monthly cost when choosing your vehicle insurance deductible and coverages.

• Generally, choosing a higher deductible means a lower monthly payment.
• Choosing a lower deductible means a higher monthly payment.

Depending on the claim, additional coverage will provide you with additional insurance protection, but it can also increase your monthly cost. Reviewing your policy with your insurance agent and eliminating any coverage you don’t need, such as comprehensive coverage on an older vehicle, rental reimbursement, or emergency roadside service, is one approach to save money on insurance.

HOW SEXY IS YOUR CAR?

What you drive is a huge factor. The car insurance companies frequently develop car safety ratings by evaluating industry safety statistics and gathering a huge amount of data from customer claims, and they may offer discounts to clients who drive safer vehicles. For less safe rides, the opposite can be true.

• Some insurers increase premiums for cars more susceptible to damage, occupant injury or theft and they lower rates for those that fare better than the norm on those measures.
• Driving vehicles that rate highly in terms of driver and passenger protection may mean savings on insurance.

So do some research on the car you want to buy before going down to the showroom. Is the car that has piqued your interest well-rated in terms of safety? Is this model frequently stolen? Knowing the answers to a few easy questions can help you keep your charges down.

DO YOU LIVE IN YOUR CAR OR JUST LOVE TO DRIVE?

How often your drive and how far has a lot to do with it. People who drive for business or long distance commuting usually pay more than those who drive less. Regardless matter how cautious a driver you are, the more miles you drive in a year, the more likely you are to be involved in a collision.

• Consider joining a car or vanpool, riding your bike, or taking public transportation to work to reduce your driving. Shorter commutes to work may result in reduced insurance rates, thus lowering your overall annual vehicle mileage may lower your premiums.
• Ask your insurance company whether you can get a discount if you drive less. By utilizing your car’s telematics information, usage-based auto insurance companies that may save you money when you drive less.

WHAT’S YOUR ZIP?

Where you live is a factor as urban drivers, on average, pay more for auto insurance than those who live in small towns or rural locations, owing to increased incidences of vandalism, theft, and crashes.

DO YOU HAVE ANY PRIORS?

Yes, your driving record doesn’t just disappear! Accident-prone drivers pay more than those who have been accident-free for several years. Don’t become complacent if you haven’t had an accident in a long time. Maintain your safe driving habits by remaining vigilant. You may be eligible for a State Farm accident-free savings if you have been insured and accident-free for three years.
Even if you can’t change your driving record, having an accident on your record might serve as a useful reminder to always drive cautiously and carefully. The impact of previous collisions on your premiums will diminish with time.

HOW HIGH DO YOU SCORE?

Credit, Credit and more Credit! It seems to be the core of everything relating to money. Certain credit data can be used to forecast future insurance claims. Many insurance firms utilize credit history to assist calculate the cost of automobile insurance where relevant. Maintaining good credit might help you save money on your auto insurance.

YOU LOOK YOUNG, SO… YOU MARRIED?

It sounds silly but yes, your age, sex and marital status does make a difference. Drivers under the age of 25, particularly single males, had a greater rate of collisions. In most states, insurance rates reflect these differences. You might be eligible for a discount if you’re a student. Most vehicle insurance companies offer student drivers who maintain good grades discounts.

CARS CAN BE DIFFICULT TO UNDERSTAND, SO IT’S ESSENTIAL TO START WITH THE FUNDAMENTALS SO YOU CAN LEARN HOW TO ASK THE RIGHT QUESTIONS.