The price you pay for car insurance is affected by a number of different factors. Factors such as where you park the car, the amount of coverage you have and your driving record can make a huge difference. All insurance carriers have a different formula but there are many factors that are identical when determining how much you’ll pay for car insurance.
- How much you use your car– The more you drive the more you’ll pay! If you think about it, this makes perfect sense. The more time you spend driving on the road with all the crazy drivers means the better chance you have of getting in an accident; whether it’s your fault or not. All companies have a certain threshold which determine if your car qualifies for the “low mileage” discount. If you don’t drive a lot, be sure to tell your agent.
- Where you park the car– Where you park your car makes a huge difference in the price you pay for auto insurance. Someone in Florence, AZ can pay a significant less amount than someone who lives in the middle of downtown Phoenix. More rural areas have less traffic, less traffic means less chance of getting in an accident. Auto insurance companies also take data such as theft reports into consideration. If an area has a higher theft rate of vehicles and you live in that area then you will be paying more for car insurance.
- Your driving record– This one should be fairly obvious, yet you’d be surprised how many people complain about their insurance rates increasing after an accident or ticket. If you’ve had an accident before, chances are you’ll have an accident again; which means you’ll cost the insurance company even more money. If you’ve had a speeding ticket or red light ticket you’ll also pay higher premiums. Statistics show (no matter how good of a driver you think you are) that people with speeding tickets get in more accidents.
- Your age- sorry teenagers, statistics show that you just aren’t good drivers. Teenagers pay more for car insurance because chances are you are going to get in a accident and cost the insurance company all kinds of money. This is also true on the other side of life- in most cases, once you are over 65, your insurance rates will start to increase a little bit year by year. So if you want to save money on car insurance, stay age 40 forever.
- Your gender– Statistically, women drivers tend to get in fewer accidents and have few traffic violations. In some states and with some carriers, gender plays a large role in your insurance premiums; in others not so much. Don’t really worry about this, because there’s nothing you can do about it!
- Your car– Is your car fast, expensive, unsafe? All these things play into the insurance premium. Sports cars will cost more to insurance. Cars with bad safety reviews will cost more to insurance. Of course, if your car is more expensive then it will cost more to insure. These are all things to consider before purchasing a new car.
It’s impossible for you (and even us) to know every single detail that goes into determining your car insurance premium. The best advice we can offer is to drive safely and to call your agent before purchasing a new car. No one wants to find out their new car costs an arm and a leg to insure after they purchased it. If you have a good agent (like us) they should be more than happy to run you quotes on a few different cars before you buy, to help you make an educated decision.
It’s also extremely important to understand that cost isn’t everything when it comes to insurance your vehicle! Make sure you find a reputable company and agent that is more concerned with offering you quality coverage than simply a “cheap auto insurance rate”. Everyone wants cheap when they are shopping for car insurance, no one wants cheap when they have an accident and need quality coverage. At Safe Street Insurance we only offer quality coverage and we usually do it with awesome rates too! If you currently don’t have insurance with us, let us know and we’ll be more than happy to get you a quote full of quality coverage that you can depend on!