There are numerous factors used by insurance providers to calculate the cost you will pay for your auto insurance. The coverage's you select, your residence, your car model, reason of using your car, and your driving history determine yourauto insurancecost. The following factors can be used as a reference to lower your insurance rates, while protecting your important things. 1. Deductibles And Coverage Auto insurance providers let you select your deductibles and decide whether to include optional additional coverage that is not essentially required by your state laws. An auto insurance deductible is the amount you must pay for the repairs before your insurance covers the rest. For instance, if you undergo an accident which causes $2000 worth of damage to your vehicle and your deductible is $500, you will have to pay only $500 for repairing the damages. Generally, the higher your deductible, the lower your monthly payment is, and the lower your deductible, the higher your monthly payment is. Additional coverage provides you extra financial protection, depending on the claim, but your monthly costs will be added as well. 2. Model Of Your Vehicle Your car’s model is a factor which you can control by purchasing the right type of car for insurance rates. If your vehicle is safer, the insurance cost will be lowered. If it has safety features like air bags, anti lock brakes, seat belts and traction control will certainly lower your cost. Research shows that owners of larger vehicles are less expected to be involved in accidents. Alternatively, owning a car that is loaded with latest technology, can reach high speeds, and is smaller in size have higher rate of accident and injury for both vehicle and passengers. It can also cause damage that is expensive to repair, while increasing the possibility of theft as well. These characteristics of a vehicle will surely increase your insurance rates. 3. Purpose and Annual Mileage Generally, when your drive your car for business purpose, and long distance traveling, you have to pay more than who drive for personal purpose and short distance traveling. The more distance you cover in a year, the higher the probability of an accident—regardless of how safely you drive. Carpooling and taking public transport are great ways to be considered for lowering your insurance rates. You can be able to decrease your premiums by decreasing your total annual mileage. 4. Your Location If you live in urban area, you will generally pay more for your auto insurance because of higher percentage of theft, vandalism, and accidents. On the other hand, people dwelling in rural areas have better chance for decreasing the rates because of lower population density and rate of accidents. The bottom line is, the more populated your area, the higher your insurance rate will be. 5. Your Gender, Age, And Marital Status Male drivers are statically at higher risk than female drivers to undergo a car accident. Young drivers under the age of 25, despite of gender, have to pay higher premiums. This is probably due to the fact that they drive more irresponsibly, get in more catastrophic accidents, and easily get distracted while driving as they are less experienced as well. Young drivers can get discounts on auto insurance by completing driver’s education programs. Married people are more likely to have less accidents than unmarried people, thus, getting married can extensively lower your insurance rate, particularly for men. However, the decrease in rate depends on your driving history. Everything cannot be controlled about your auto insurance rates, but these are some factors which can be helpful to lower your premiums.
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