Car Insurance Costs: Reasons Your Premium May Be High

There are a lot of factors companies consider when creating your car insurance quote or setting your insurance policy price. The cost relates to the amount of risk the company believes it takes on when insuring you and your vehicle. Some factors you may think of off the top of your head, such as car accidents or traffic tickets, but some pricing considerations may surprise you.    

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Car Insurance Costs: Reasons Your Premium May Be High

26 Oct 2017

Car Insurance Costs: Reasons Your Premium May Be High

There are a lot of factors companies consider when creating your car insurance quote or setting your insurance policy price. The cost relates to the amount of risk the company believes it takes on when insuring you and your vehicle. Some factors you may think of off the top of your head, such as car accidents or traffic tickets, but some pricing considerations may surprise you.  

Here are four factors that can affect the cost of your car insurance.

 The odometer matters

The amount you drive your car affects your insurance cost. The more you drive your car, the more opportunities arise for an accident or traffic violation. Different companies scale their rates at different mileage points; but it is universal that the more you drive, the higher the cost. Consider this when choosing to drive or fly for a trip or when deciding on buying a second vehicle for leisure or commuting.

 Age is a factor

Statistics show that age does factor into how safe a driver is. Research proves that those under the age of 25 and over the age of 65 have a higher risk of accidents than those between the ages of 25 and 65. This is why premiums are much higher for those under the age of 25 or over 65. You can’t control your age, but there are ways to help bring the cost down. Young drivers usually receive discounts for holding at least a B average in school or taking drivers ed, while those over 65 can get a discount for taking a defensive drivers course.

Your car can cost you

Your car may be a reason you’re paying a higher price for car insurance. Insurance companies factor in the safety ratings and features of your car when calculating your premiums. Certain safety features, such as automatic seatbelts or traction control, can lead to discounts on your premium. Check the safety rating of your car to see if it may be raising your premiums.

Driving record is king

The largest factor of your car insurance cost is your driving record, especially from the past five years. Things like tickets, accidents, and claims can cause you to lose valuable safe driver discounts and lead to your premium going up. In some cases, your coverage could be cancelled or denied because of a rough driving record. The easiest way to rack up the discounts and save on your car insurance is to drive safe and keep a clean record.

Armed with the facts about what affects your insurance cost, you may be able to make some changes to help lower your premiums. Have other questions about car insurance? Ask us below! 

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