Car insurance rates differ from one insurer to another and from one driver to another. In order to get the cheapest car insurance rates it is helpful to understand how they are calculated. Here are three factors that help to determine the premiums that you pay.
Your personal status is a large factor in determining car insurance rates. Male drivers pay more than female drivers especially young male drivers. Married drivers pay less than unmarried drivers. Your age is a factor as well. If you are young, under 25, you will normally pay more, even if you have a good driving record. Teenagers are hit with some of the highest rates, due to their lack of experience and high risk for accidents. Some relief may be found by showing proof of good grades, which can earn you a discount that takes the sting out of the rates you pay. If you are an older driver and driving less or have taken a defensive driving course you may pay less for car insurance.
The car that you choose to drive also determines the rates. A newer more expensive car costs more to insure. But there are also certain makes and models of cars that are more attractive to thieves and the rates for the insurance on these cars costs more as well. If your car is a brand that is expensive to repair that can result in higher rates. If your car has expensive rims, a custom stereo or an expensive paint job then it is worth more and may cause a bigger claim to be filed if the car is stolen or damaged. You may need to add extended coverage to your car insurance policy and pay the additional premiums for it. One way to lower your rates is to have a car with theft deterrent devices such as an alarm system or tracking system. Discounts for these protective devices will lower your rates.
When you apply for car insurance you want to get the best deal. But if your driving history is not clean then you will likely pay more. Tickets for moving violations are noted by the insurer. Any accidents that you have been involved in are factored in as well. Even if you weren't at fault accidents may count against you, depending on the insurance company. Maintaining a clean driving record is one way to get the cheapest car insurance rates.
There are other factors that insurance companies consider but these are the main three. Car insurance is the second largest expense in owning a car, after the car payment. Understanding what is factored into the rates can help you to find the best deal.