However, auto insurance premiums differ for each individual. The insurance companies have to weigh if you are accident prone or not. The higher the risk you may be involved in a car accident, the higher the insurance premiums will be. Some of the factors considered by insurance companies when determining premiums are:
- Coverage. The more coverage you include in your policy, the higher the premium
- Age. Young (16-21) and elderly (≥70) drivers are considered as high risk drivers and are more prone to accidents.
- Car model. The more expensive a car is, the harder it is to replace it in cases of theft or accidents.
- Car manufacturer. The more common the manufacturer is, the lower the premium.
- Location. Urban areas have higher premiums. More cars mean high risk of accidents.
- Driver's Gender. Men are more prone to accidents than females. Therefore, higher premiums.
To lower your vehicle insurance premiums, you can follow the following tips:
- Search the market. Look for companies that offer the best package and discounts. When choosing an auto insurance company, it is critical that you check their financial stability.
- Get group insurance. Many companies offer discounts to premiums if you avail policies in group. The easiest route is through your employer.
- Get a simple car. Low profile sedan fetches a lower premium compared to expensive sports car.
- Take defensive driving lessons. Companies would see your intention to keep away from accidents.
- Keep your credit report clean. A clean record means you always pay on time.
- Safety features. Reducing the risk of injury also reduces your premiums (anti-lock brakes, dual side airbags and electronic seatbelts).
The best way to keep your auto insurance premiums, though, is to keep obeying traffic laws and be a responsible driver.