When it comes to driving safely, car insurance is one of the most important things for which you could possibly be responsible. Every driver on the road needs to make sure that they have insurance; it’s a matter of social responsibility. In most cases, it’s against the law to avoid having car insurance. Should you get into an accident with another driver, your insurance policy will make sure that the other driver will be compensated for any damage they suffered (if the accident was your fault). For these reasons, it’s very smart to make sure that you shop around and find an insurance policy that properly suits your needs. There are many different providers that offer auto insurance, and there are a lot of different things that will affect the rate that you wind up paying for your auto insurance. Some of these things you can control, and some are things that you can’t really do anything about. The following five factors will have an impact on what you will wind up paying for your auto insurance.
1. Your Age. Your age is going to have an impact upon the amount that you have to pay for your car insurance, but only to a certain degree. When you’re younger, your insurance costs are going to be higher, because younger drivers are just statistically more likely to get into accidents than older drivers are. For this reason, auto insurance providers will typically charge a bit more for younger drivers than they will for older ones.
2. Driving Record. No matter how old you are, the insurance company is going to want to take a look at your driving record before they actually provide you with coverage. They’re going to want to look for any accidents in which you were at fault, and they’re going to be on the lookout for moving violations, as well. These will increase your rates. If your record looks good, you will be able to avoid paying more than you really have to.
3. Report Card. If you’re a younger driver, you might be charged a little bit more for your auto insurance. You can soften this blow, however, by making sure that you get good grades in school. When you’re a younger driver, you can show the insurance company that you’re a responsible and careful individual by getting good grades in school.
4. Where You Live. The area in which you live is going to impact your auto insurance because this might make your car more likely to get damaged or broken into. The place where your car is parked overnight on a regular basis poses a certain amount of risk to its safety. The insurance company is going to consider this risk and adjust your rate accordingly.
5. The Type of Car You Drive. Your auto insurance rates are also going to be impacted by the kind of car you drive — if it’s an expensive or exotic car, it’s going to be expensive to insure, because repairs will be very, very costly. If your car is a more common and/or affordable vehicle, it won’t cost very much to repair. Therefore, you won’t have to pay so much to get insurance for it.