Thursday, November 21, 2013

6 Factors That Influence Your Car Insurance Premiums

clip_image001Most people already know that the points on their driving record impact their insurance premiums, but there's a lot more to it than that. Many factors come into play when an insurance company is calculating your premium. Here are some of the many things they may consider. 

What You Do for a Living

Your occupation can impact your car insurance premium either positively or negatively. Car insurance companies look at the statistical odds of car accidents for various professions. Jobs that need attention to detail are often rewarded with a lower premium. Scientists and pilots have some of the lowest car insurance premiums. High stress occupations that have long hours typically result in a higher premium. If you have a career in law or medicine, you'll probably pay more to insure your car. 

Where You Take Your Car

The more you drive, the more you'll pay for car insurance. Your long commute will cost you more than just gas. Lowering your weekly mileage can help you save on your premiums. You should also expect a higher premium if your car spends a lot of time in urban areas during your commute to work. If you drive your car all day as part of your job, your premiums are usually even higher. 

Who's in Your Family

Most people know that teenagers, particularly teenage boys, have a higher risk for car accidents, and are therefore expensive to insure. Women in general are less expensive than men. Your marital status comes into play as well. Many companies charge a lower premium for married people than single ones. If you're insuring several people on one plan, you may get a discount for multiple cars, but the age and gender of the others on the plan will impact your premiums as well. 

Who Insures You

While most insurance companies look at the same factors, they don't all weigh them the same way. Take the time to gather affordable auto insurance options from several providers to find the best deal. Do this on a regular basis, as rates can change over time. 

Where You Live

Your zip code tells an insurance company a lot about the risk factors for your car. If you live in a high crime area, you'll pay more for insurance. Urban areas are typically more expensive as well. The safer your neighborhood, the lower your premiums. 

What You Drive

Your car plays a big part in your insurance premium, but it's not as clear-cut as you might think. Older cars aren't always cheaper. A new car with a high safety rating may actually lower your premium if your previous vehicle was very unsafe. Additional features like an anti-theft system will lower your premium as well. Contrary to common belief, the color of your vehicle does not impact your premium at all.

With these factors in mind, you may find that you can take steps to lower your car insurance premiums. Always compare rates to make sure you're getting the best deal you can.

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