Car Insurance Rates
Your auto insurance premiums are affected by a number of factors:
- For starters, they’re linked to the type of vehicle driven. If you’re buying or leasing a new car, check the insurance rates before you make your final choice. For example, SUVs, convertibles and performance vehicles typically cost more to insure than some cars.
- Safety devices on your car can help reduce your premiums. If you’re buying or leasing a new car, consider getting one with anti-lock brakes, side air bags, automatic seat belts and daytime running lights.
- Anti-theft devices on your car, such as an alarm system and global positioning system – so that your car can be located if stolen – can help reduce your premiums.
- Where you park your car can also impact premiums. If you have access to an indoor garage or locked parking lot – places that decrease the likelihood that your car will be stolen – you may qualify for lower premiums.
- The geographic region in which you live may impact your premiums. For example, areas prone to extreme weather – hail, wind storms, hurricanes, etc. – higher traffic patterns or higher risk of theft may have higher insurance rates. If you live in an area prone to extreme weather, check whether your policy includes comprehensive coverage on your car to cover potential damage from storms.
- Your driving record – tickets, accidents, DWIs/DUIs (driving while Intoxicated/driving under the influence citations) – directly affect your premiums.
- The number of claims you have previously filed impacts your insurance costs. You may want to consider not filing claims for smaller events to avoid premium increases.
- Finally, the cost of your insurance is directly linked to your policy’s deductible amount. The deductible is the amount of money that you agree to pay as part of a claim, before your insurer pays the remaining amount toward that claim. For example, if your vehicle incurred $1,000 of damage in an accident and your deductible was $250, you would pay the first $250 and your insurer would pay the remaining $750. The higher the deductible, the lower the premium.
source: gainsurance
