Factors That Affect Your Car Insurance Premium - By: shay

To have a better understanding on the factors that auto insurance companies use to determine your auto insurance premium, take note of the following things:

Driving Record
If you are proud to have a spotless driving record, you may have Safe Driver Discounts. Then again, any traffic infractions, driving under the influence or DUI convictions and reckless driving tickets are expected to affect your auto insurance premium the most.

Claims History
In case you have had at-fault auto insurance claims, they would affect your auto insurance premium more than non-at-fault auto insurance claims. On the contrary , a auto insurance company may even add up your non-at-fault accidents against your auto insurance premium.

Automobile
The value of the vehicle and its type are important aspects that affect your auto insurance premium.

Coverage
A/An auto insurance policy that has liability coverage allows you to drive legally in your state. Then again , if you have physical damage coverage, like Collision and Comprehensive, your auto insurance premium increases.

Personal Information
The number of named drivers, gender, age and marital status are all significant aspects on your auto insurance premium. Teen drivers have high auto insurance premium; elder drivers are more likely to have less traffic tickets and mishaps; married people are generally considered as safer drivers.

Vehicle Use
If you drive more miles annually, you would have higher auto insurance premium. Moreover, cars that are used only for pleasure are likely to have cheaper auto insurance premium than those that are used for business.

Occupation
It has been found that there is a connection between your occupation and your risk as a driver. For instance, if someone who only drives to and from work on a daily basis is considered a lower risk than someone who delivers goods using his vehicle.

Credit Rating
Vehicle insurance companies are more and more using credit rating to settle on auto insurance premiums. According to statistics, people who have bad credit rating make more auto insurance claims than people who have good credit.

Geography
Drivers who live in the countryside get reduced auto insurance premiums than drivers who live in the urban area because the urban area tends to have more traffic accidents.

Deductibles
Usually , if you have higher deductible, you will pay reduced auto insurance premium.

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