The Cost of Car Insurance

Whether you’ve purchased a new car or are just wanting to get that old clunker back on the road again, the cost of auto insurance is one of the biggest questions you may have. You may hear your friend talking about the low rate that they received with Company X for their car insurance and think that this is the rate that you will pay, however costs of these premiums will vary greatly between each individual based on a number of factors. Here are some of the things that can affect your car insurance rates.

Things You Cannot Change

Unfortunately there are factors that play into the cost of car insurance that cannot be changed. Most car insurance companies will look at your age, gender, and marital status. Drivers under the age of 25 are often considered to be riskier drivers and will almost always pay more for their insurance. Typically male drivers are also more expensive to insure, as are single individuals. But do not worry! While these things cannot be changed, there are plenty of other things that you can do to help get the best rate possible on car insurance.

Play it Safe

Two very important things insurance companies look at when determining premium rates is your driving record and credit report. Maintaining a safe driving record can assure you will get the best rates possible for your insurance needs. Speeding tickets, accidents, and other moving violations can increase your premiums by as much as 35-45% or more, with just one infraction on your record. Obey all the rules of the road so that you do not see an rate increase as dramatic as this.

It is equally important to keep your credit rating in a positive standing. If you have any outstanding debts, make every effort to pay them off. Check your credit report once per year for any inaccuracies, and if there is any incorrect information, make sure to file a dispute. A good credit score will help you in the long run with car insurance premiums.

The Type of Car you Drive

The type of vehicle you are driving is yet another determining factor when it comes time to pay the insurance company. Small, economical cars are always cheaper to insure. Sports and luxury cars cost the most, and cars painted in red may also increase your policy price. It might be nice to drive an Audi, but is it worth the extra money you will pay for car insurance?

The Company you Choose

Car insurance rates vary greatly between each company. Comparing rates is a great way to get the best rates and policies available for your insurance needs. Rates can quickly be compared online, where many times a policy can be started right away if you so choose. Quotes are free, and it is recommended that a minimum of three quotes be obtained before deciding which company to choose.