Factors That Detemine Car Insurance Costs

Find out the exact factors that determine car insurance costs. Remember that some of these factors are under your control and you can also influence the rates. Read more and get an auto insurance online quote.

  • # auto-insurance-discountsThe model and value of the vehicle. The type of car you want to insure and its value play crucial roles in determining auto insurance costs. Usually, newer, more expensive cars cost more to insure. Companies will ask to give more info about your car before issuing a policy. You will be asked: the brand of the car, the model (including fabrication year), what type of car it is (SUV, limo, family car), if you use it only to get to work or for other purposes and so on. It is also likely to be asked if you have full ownership of the car or you are still paying.
  • How safe that car is. Insurance companies use statistics to determine the risk profile of a car. If a certain model has caused numerous accidents or there were been reported fabrication faults, it likely to apply a hefty charge on auto insurance.  Also, insurance companies check safety rating for car models before providing coverage. If your car is considered safe, you will pay less. Installing safety devices will lower the rates.
  • Driving history. Every insurer is interested not only on the car model, but also on who is driving it.  Having numerous offenses like parking tickets or speeding will influence the rates. Prices go even higher if the applicant has DUI incidents in his records.
  • Driving experience. Persons that get their first car are charged with slightly higher premiums because they are considered inexperienced. But after some years, when you will renew the policy, experience will be in your favor and will help you get lower rates.
  • The policy itself. If you ask for more coverage and you apply for multiple policies, you will surely have to pay more. Apply only for policies compatible with your needs and financial possibilities.

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