Here is a look at the 5 Basic Factors that can be kept in mind as they affect car insurance rates:
1) Age and Gender
Car insurance companies are slightly discriminatory when it comes to age and gender. If you are under 25 years of age and male, you are likely to pay more because according to surveys younger men have more accidents than women. Mature drivers can expect to pay less. Your marital status also factors here - singles pay more car insurance, though a married woman with a record of bad driving will be charged more.
2) Driving History
How you have driven in the past will affect your car insurance rates - if you have a record of accidents, speeding or breaking traffic rules, or a history of DUI - driving under influence - your insurance company will make you pay a greater premium because they are essentially taking a risk by insuring you. Some offences cease to affect your rate of insurance after a few years, but others like DUI have far reaching effects.
3) Your Car
How old your car is, the make, size and safety rating also play a huge role in determining how much insurance you will be paying. If you own a car with prominent safety features such as air bags, Anti-Breaking System or ABS, traction control, seat belts etc. go a long way in reducing your premium. A larger car is usually considered safer than a smaller car; an older car is unsafe as compared to a newer car. If your car falls in the top 10 category of popular cars, it is also a likely target for thieves, thus raising the rate of premium for you - which you can lower by installing car alarms and taking other anti-theft measures.
4) How much you drive
Whether you drive often or less frequently is also taken into account when you are being billed for car insurance. You can lower the rate by resorting to public transport but you will have to disclose any aberrations such as taking your car to the subway etc. to your insurer.
5) Special Discounts
Ask your insurance company or agent for any discounts that might apply to you if you have been a loyal customer, if you are retired, if you buy other insurance policies from the same company, etc. No Claim Bonus is given for not claiming the previous year and it can also be transferred from one car to another. Hence it makes a lot of sense to check for discounts that you can avail before purchasing the same.
Make sure that you get the optimum deal while buying car insurance and once you are aware of the steps you can take to reduce the premium, do not hesitate to implement them. This is the major cost when you buy a car and do not for a second think of not investing in quality car insurance - it will benefit you in the long run in the event of any car-related mishap.
Written By: Deepak Yohannan
The author is the CEO of MyInsuranceClub.com, an online insurance price & features comparison portal
For more articles by Deepak Yohannan, please visit MyInsuranceClub.com
You may write to the author at Deepak@myinsuranceclub.com