Average Car Insurance Premium
Many factors affect the premium you will pay for car insurance. Each factor is a statistically calculated by car insurance companies for a specific population. The higher the risk associated with a person, the more he or she is likely to pay for car insurance coverage. Below we discuss some of the risk factors, but there are numerous others including but not limited to the driver's gender, miles driven per year, purpose for using the vehicle (commuting to work, using for work, leisure only), etc.
Age — Statistically, drivers under the age of 25 are at greater risk of being in an accident than those over age 25. Drivers between the ages of 50 and 65 generally have the safest records.
Gender — Women are statistically safer drivers then men, but that trend is changing as more female drivers get on the road.
Marital Status — A married person will pay less than a single person with an identical driving record. Married persons are seen as more responsible and mature.
Geography — Where you live makes a difference. Folks living in areas with little or no traffic are likely to spend less on insurance than those living in congested cities or suburbs because areas with a lot of traffic tend to see more accidents. Some neighborhoods also have a higher rate of vehicle thefts, which can result in a higher premium.
Driving Violations — Having an accident or moving violations on your record - speeding tickets, DWI, reckless driving, etc - put you at a higher risk for accidents and will likely mean a higher premium. Some insurance companies will penalize you for your record for as many as five years from when the incident occurred. However, keep in mind, as your record improves, your car insurance premium should get lower.
Vehicle Type — A cheap car will cost less to insure than that status symbol SUV sitting on 24" rims.
Accident Claims — A driving record that is clean and free of accidents will hold far better for you than lots of tickets and/or accidents.
Credit Rating — Many insurance companies view having a poor, or even no credit history as suggestive of higher risk and thus, charge you a higher premium. Monitor your credit rating free to see if you can get a better score. A better credit score will save on insurance premiums.
Occupation — Insurers have statistically found a correlation between your occupation and risk. For instance, a newspaper delivery person is most likely a higher risk than the personal banker sitting at their desk all day.
Education — A higher education can save you money on car insurance premiums.
Driving distance to work and the number of miles that you drive each year.
Years of driving experience.
Business use of the vehicle.
Whether or not you currently have auto insurance and how high are your limits.
Theft protection devices often result in a discount.
Multiple cars and drivers can also offer another opportunity for a discount.
You can think about the car insurance premium risk factors and determine which you can change and which you can not. Use the free car insurance quote form to the right of most web pages to compare your existing insurance premium. Even if you are a young single male driving a fast sports car, you can still save on car insurance by using our free car insurance premium quote form.
