Thursday, September 29, 2011

Car Insurance Premiums

1:12 PM |

Factors that Affect Car Insurance Premiums

Car insurance is very important, although some people may take it for granted and think they can save some money by not having it for their vehicle. While this is true on the surface, when something happens like a motor accident, one who has not bothered to get insurance coverage for his car will find his problems further compounded. He will be spending much more money for the repairs of his car out of his own pocket rather than letting his insurance company foot the bills from the premiums should have been paying. Additionally, most states that have stiff penalties for vehicles without the required insurance coverage.
It is best, therefore, to follow the rules regarding car insurance requirements instead of trying to go around regulations. Additionally, the premium costs can be very reasonable – even cheap – depending on what kind of car user you are.

If you are young, especially between the ages of 18 and 25 years old, you will likely be paying a higher premium. Drivers in this age bracket are considered higher insurance risks, so they are charged higher car insurance rates accordingly. And if you happen to have a record of past violations on the road, the more is there a need that you have to address them in the premiums to be paid. The firms giving you the coverage will examine all these factors in your record as a car driver. As such, you must be careful not to commit more misdemeanors on the road if you want to have an improved driving history and, eventually, lower insurance rates.
Female drivers, on the other hand, are generally considered by insurance companies to be safer drivers than males because research shows they are generally more careful in their driving habits. This means that often women are afforded cheaper insurance rates than their male counterparts.

Another important factor to be considered regarding the car insurance premiums to be paid is the age of your car. The year, make and model can either higher or lower the premium cost. Older cars normally have higher premium payments for their insurance coverage. Newer cars are perceived to be more efficient on the road, so the chances of meeting accidents are less – hence the lower insurance premiums on them.

Location also plays a very important role in determining the rates of insurance premiums. Places where car accidents happen more often have higher premium rates for obvious reasons. Insurance companies are particular on this matter, as they tend to lose money if they do not pass on the costs of accidents to the insured car premium payments for their coverage. In cities where car thefts are also considered prevalent and a continuing problem, insurance premiums rates are also much higher.

By knowing these facts about car insurance, you can then budget your money accordingly and perhaps will not be made to pay outrageous car insurance premiums. Ignorance about these factors related to car insurance will almost certainly cause you to pay more than what is really required.

Leave A Comment