Basis of auto insurance premium charges

Basis of auto insurance premium chargesYou probably know that the premium you are charged by an auto insurance company aren't fixed prices and are based on a whole set of factors influencing how much you will pay for auto insurance coverage next year. Most of you have observed that the premium can change each year, especially if you had an insurance claim, speeding ticket or an accident with your insured vehicle. In order to keep the rates down and get the most out of your insurance without spending too much money, you will have to learn the primary factors affecting your premiums and learn how to use them in order to cut down your insurance costs.


The first and foremost factor defining your insurance rates is of course the car you want to insure. The model, make, age, engine volume, overall mileage, safety rating and security features of your car all contribute in a large part to what you will be paying. Auto insurance companies have special charts and ratings, assigning each car with a risk value. The higher the risk the more you will have to pay. In order to cut down insurance costs on this factor you will have to choose a less risky car. Medium sized family sedans are considered to be the best choice for that. But if you want to drive your SUV, luxury or a fast sports car, be prepared to pay much more.

Your driving record is another factor that will influence your rates. This document contains all your activity is as a driver. If you get a traffic violation ticket or take part in an accident (no mater at fault or not) this will be introduced to your driving record. And the cleaner it is, the lower a risk you are considered by the auto insurance provider. This means a lower premium. If you have many notes in your driving record, a good way to improve the situation is enter a driving school or joining an auto club. Take a course of defensive driving and make sure to get a certificate. This will earn you a discount with your insurance provider that will help you eliminate the negative effects of a bad driving record.

Another important factor that may surprise and upset many drivers out there is the age and sex group they make part of. Young male drivers are the most unlucky here, because they are typically charged with the highest rates. This is because this group of population has the highest number of insurance claims and more accidents than other age and sex groups. So if you are a young driver and feel that your auto insurance premiums are too high, there are several things you can do. If you are a good student, you can opt for a special discount. You can also take a safe driving course, or join an auto club for a discount. Your parents can include you into their auto insurance policy if you are a teen.