If you’ve ever compared car insurance quotes, you know that the rates you get from one insurance company can be very different from another. That’s because each insurance carrier takes a different approach to determining monthly premiums, which means that you could save a small fortune by finding a provider that caters to your particular driver profile.
There are dozens of factors that car insurance companies consider when calculating premiums. Many of these factors, such as age, driving history, and vehicle type, change over time. So the cheapest insurance company today might not be the most affordable in one year, three years, and beyond. This is why it is so important to compare auto insurance quotes each time you renew your policy.
In order to find the best auto insurance quotes for your particular situation, it is first important to understand the factors that insurers consider when calculating monthly premiums. Let’s examine a few of these factors and how you may be able to reduce your monthly insurance rates:
1. Your Age
It’s no secret that young, inexperienced drivers tend to be involved in more accidents than older drivers who have logged more hours behind the wheel. As such, teenagers are considered to be a greater liability to insurance companies, which is why they usually pay more for car insurance.
Although you have no control over your age, you may be able to find cheaper premiums by switching to an insurance provider who caters to your age group. For example, some insurers offer better rates for teen drivers than others.
2. The Date You Became A Licensed Driver
Teen drivers aren’t necessarily involved in more accidents because they’re irresponsible; it’s because they lack experience. If you are a recently licensed driver—even if you’re in your 20s—you can expect to pay more for car insurance than a motorist who has been licensed for a longer period of time. Again, although you cannot control the age at which you were licensed, you may be able to find lower auto insurance rates by switching to a company that caters to this driver category.
Young and inexperienced drivers tend to pay more for auto insurance since they are statistically more likely to be involved in an accident.
3. Your Accident And Traffic Offense History
Your auto insurance premiums will ultimately be determined by how much of a liability you are to your insurance provider. As such, it goes without saying that you will pay more for insurance if you were involved in a recent accident, cited for a traffic offense, or convicted of DUI or DWI.
One of the easiest ways to reduce your car insurance premiums is to maintain a clean accident and traffic offense history for several consecutive years. If you were involved in a collision or cited for a serious infraction and you noticed a significant increase in your premiums, try comparing auto insurance quotes to find a provider who is more forgiving than your current insurer. Some companies offer accident forgiveness policies, which means being involved in one collision will have less of an effect on your insurance rates or no effect at all.
4. Your Annual Mileage
The more time you spend behind the wheel, the more likely you are to be involved in a collision. This is why just about every insurance application asks for your annual mileage. You may be able to get your premiums reduced by limiting your annual mileage—for example, by moving closer to your work or school.
5. Your Vehicle
Car insurance companies have clued in to the fact that some vehicles are involved in more accidents and thefts than others. As such, the cost of auto insurance can be very different from one vehicle to the next. If you purchase a car that is rarely involved in collisions, you may notice a significant reduction in your monthly insurance premiums.
Now that you know the factors that affect your auto insurance premiums, it’s time to put that knowledge into practice. By following the tips outlined here, you could save a veritable fortune in the long run by getting your monthly insurance rates reduced.