There are several factors that can increase your car insurance costs. Some of the following factors may cause your insurance costs to be higher than desired.
1. Your vehicle’s location.
Insurance companies price all policies based on the risk that a driver will eventually make a claim. One of the factors they will consider when calculating this risk is your zip code. Accident Statistics are factored in so if your insurance premiums are higher than normal, chances are that you live in a zip code that experiences a high rate of auto accidents.
Also, data on the number of cars that have been stolen, damaged or involved in serious accidents in your area will be factored in by your insurance company. If their data and statistics show vehicles kept in that area are particularly vulnerable to such incidents, it’s likely your policy will cost more.
Luckily, moving to a new part of town is not the only option if you’re looking to keep the price of your auto insurance down. Security measures such as keeping your car in a garage or on a drive rather than parking it on the street can decrease your costs. Also, equipping your vehicle with an immobiliser or alarm, should help minimise the risk to your vehicle.
Its important to make your insurance agent aware of the security steps you’ve taken so they should also help mitigate any effects your zip code might have on your premium.
2. Your age.
Drivers who are under the age of 25 or over 65 are often hit with higher car insurance premiums. Insurers’ data collected shows that drivers in those age groups are more likely to make damage claims. If you are under 25 and looking to lower your car insurance costs, steps such as taking a defensive driver course should help.
3. The car you drive.
While it may seem obvious that your choice of vehicle will affect the price of your car insurance coverage, you might be surprised to find out how cheap (or expensive!) some vehicle models are to insure.
The price of your car insurance policy will be affected by the make and model and by how powerful your car’s engine is. Also considered is how much you paid for your vehicle and how secure it is deemed to be and the cost of spare parts for it.
4. Your gender
Statistics have shown that women are less likely to be involved in serious car accidents than men; As a result their car insurance usually costs less than men’s policies.
5. Your job
Finally, your job title and position at work can also affect the price you are charged for car insurance. If you have a job that could be described using several different titles you could experiment with them when comparing insurance quotes to see whether prices vary. Titles and positions that suggest high risk will cost the insured more.