What Affects your Car Insurance Premium

Auto insurance premiums averaged $1,566 in the U.S.for 2010. This rate is the common price drivers pay to carry the state required coverage on their vehicle. However, this rate can be affected by many things, and the rate you are quoted for auto insurance premiums can be higher or lower than this price. So what exactly affects how much you will pay for auto insurance?

Driving Record/Credit Score

Your driving record and credit score have a large impact on the amount you will pay for car insurance. Having just one infraction on your record can increase your price by as much as 44%! The more infractions on your record, the less responsible you are considered when it is time to take to the wheel of an automobile. Keep your driving record clean by obeying all driving laws, including speeding. Try to avoid accidents, of course, and if possible, attend a driving course. You should also keep a close eye on your credit score. Many car insurance companies will view your credit report and make a decision on your rates based in part by this score. Get an annual credit report, and if you find that there are errors, get them corrected as quickly as possible. The lower your credit score, the higher your car insurance premiums.

Type of Vehicle

The type of vehicle that you are driving also affects your car insurance rates. Sports cars and luxury cars always cost more to insure. As auto thefts continue to rise in the U.S.,you will also pay considerably more to insure a car that is on the list of high theft vehicles. Included in that list are the Honda Accord, GMC Yukon, Ford F-250, and the Cadillac Escalade. Steer clear of these vehicles, or opt to add security features such as steering wheel locks that can offer discounts.

 Things That Are Beyond Your Control

While the Things Above Can Be Controlled, there are also several factors beyond your control that can cause an increase in your car insurance premiums. Those things include your age, where you live, and your gender. Those under 25 years of age will pay more for their car insurance as they are considered high risk drivers. The area you live in also plays a big role in the price, and generally, males will pay 25% more than females to insure their vehicles.