When it comes to auto insurance coverage, everyone wants to find the best deal possible even if you’re investing in the highest level of protection available. There are many factors that insurance providers use to help determine the cost of your auto insurance premium. In fact, it’s possible for two drivers who seem similar on the surface to have vastly different car insurance costs. And while some of these factors used to determine the price of your auto coverage are pretty obvious, others may surprise you. Keep reading to learn more about these important factors and how they affect your bottom line.
7 Fixed Factors Used to Determine Car Insurance Costs
Did you know that age is often the biggest determining factor related to your auto insurance premium? Teen drivers are typically the most expensive people to insure on a policy, followed closely by drivers aged 20-25. However, once a driver is over the age of 25, their rates will usually begin to drop. But keep in mind, as you enter into your golden years, your premium costs will likely begin to climb again.
While this may seem a bit discriminatory, research shows that men typically drive more miles each year than women and are more likely to make risky driving choices. This means that they have a much greater chance of getting into an auto accident versus female drivers. Because of these risk factors, men often pay a higher insurance premium than women.
3. Marital Status
Research also shows that married drivers are much less likely to be involved in an auto accident. This makes them a much safer risk for insurance providers and helps to lower premium costs.
Where you live can also have a big effect on how much you pay for car insurance. If your home is located in a more expensive area, chances are that you’ll be paying more for your insurance costs as well. Additionally, Minnesota state minimum insurance requirements factor into your insurance costs, meaning you may pay more or less than a driver with similar information to yours who lives in a different state.
5. Your Vehicle
The type of car that you drive also plays a big role in determining your insurance premium. For example, research shows that mini-vans are less likely to be involved in auto accidents than sports cars. Additionally, really expensive vehicles carry higher insurance costs because of their value and the costs required to repair or replace them after an accident.
6. Vehicle Safety Features
Driving a safer vehicle can also help to lower your insurance premium costs. Safety features like airbags and antilock brakes can result in insurance discounts that make your car cheaper to insure than others. Even newer safety features that come standard on modern vehicles like lane-change alerts may help to get you a better discount on your coverage.
7. Insurance History
Insurance providers prefer that you don’t have any gaps in coverage. Driving uninsured is a huge risk factor and doesn’t look good on paper. So, whenever you switch insurance providers, make sure that you stay continuously insured. Not sure how to prevent gaps in coverage, talk to your independent insurance agent for more details.
Invest in Comprehensive Auto Insurance Coverage Today
Interested in learning more about how your insurance premiums are determined? Whether you need more information on your coverage options, you’re interested in a free quote, or you want more information on insurance discounts, don’t hesitate to give us a call today. At Krog Insurance, our independent agents are always here to help!