Auto insurance can be confusing and mind boggling sometimes
and its hard to determine exactly why some individuals are
receiving rates which are lower than others. There are many
factors which contribute to the rate of auto insurance, some you
have control over and others you dont.
Below you will
find valuable information regarding the factors which are
compiled in order to determine the rate of your car insurance.
These will help you understand important aspects of auto
insurance and why some individuals receive higher rates than
others. Here are the top five factors which auto insurance
companies will consider when determining your rate of insurance:
1. Age Your age will greatly affect the rate of your car
insurance. Teenagers and individuals who are just beginning to
drive will have higher rates for no reason other than their age.
There is nothing you can do about this, as you get older and
become a more experienced driver your rates will go down.
Although they will go down, they will not stay down. When you
reach a certain age your car insurance rates will go back up
because you are an elderly driver and your eyes and coordination
may not be as effective anymore.
2. Auto Insurance
Companies This is a factor which you have control over. Some
car insurance companies offer lower rates than others for many
reasons. It is up to you to choose which one will benefit you
the most both now and in the long run.
Whether you are male or female will also affect the rate of your
car insurance. This is yet another factor which you have no
control over. Females generally have lower car insurance rates
because according to insurance companies men are seen as
potential dangerous and careless drivers who are more likely to
be involved in car accidents.
4. Type of Vehicle As
much as we would all love to be driving a shiny silver Porsche Boxter all around town, the insurance rates for these types of
vehicles are unreal. If you want your auto insurance rates to be
low, I would suggest driving a car with a lower price tag. The
more money your car is worth, the higher your car insurance rate
5. Driving Violations This is another factor
which you have control over. I know how tempting it is to race
your friends the moment you get your license for the first time,
but the amount of money you will pay in the long run hardly
seems worth it. Any form of ticket you receive can potentially
raise the rate of your car insurance. If you want to pay less
for car insurance I would suggest abiding by the rules of the
Although these are the most important factors in
determining your rate of car insurance, there are many other
factors which also play a part in how much you will pay. Auto
insurance is something we all have to pay for, but by
researching and understanding the aspects of this form of
insurance you are learning how to reduce your rate to your best
About the Author:
Bill Mason is a retired insurance agent who now writes as a
freelance writer for
http://www.insuranceguide101.com a site that offers
information on home owners insurance
http://www.insuranceguide101.com/car-insurance/, low cost
health insurance and more.