What Are The Key Factors Which Would Affect Your Auto Insurance Premium Price?

By Author: J.J. Yong
Total Articles: 963
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There are many factors which would affect your auto insurance premium, each of these factors are associated with certain risk percentage which is more applicable to an individual than the others. The higher the risk associated with the individual, he or she is likely to pay more for the insurance coverage. Some of these factors which we need to aware of are;

- Age: youngsters before age 25 is at a greater risk of being in accidents than those above 25 as less matured people tend to get more emotional than those above age 25. They will drive emotionally and when they are angry or sad over an issue, they will tend to drive recklessly.

- Driving destination - if you used to drive in the urban areas, as the rate of vandalism and theft are higher as compared to those in rural area, therefore if you are living in an urban area, your auto insurance will tend to be higher.

- The type of car you are driving: in general, the more expensive the car is, the higher the interest premium you will need to pay for. The reasoning for this is easy, expensive car tend to be the target of theft more as they are more liable to ...
... be resold in the illegal market with good resell price.

- Gender: it was originally believe that male tend to drive much faster and careless than female do but the fact is that as more and more female get on the road, the statistic has changed. Both sex shared the same driving statistic nowadays.

- Marital status: a married person will tend to pay lesser for their car insurance for the same type of loan and of the same driving records as compared to someone single.

- Accident claims - someone with a clean driving record will no accidents will tend to be liable for a lower insurance premium because these people are perceived as someone who obeys the traffic rules, cautious and responsible on the road.

- Occupation: There are some correlation between occupation and accident rates which need to be taken into account. Occupation such as Pizza delivery man and some who are responsible to drive the manufactured goods from one place to the other are more likely need to pay a higher insurance premium than someone who are working in the bank office or hospital clerk.

-Credit rating: it is normal for insurance companies to view someone with poor credit history to be of higher risk and therefore they are usually demanded with an higher insurance premium. Thus, do something to improve your credit score is a good thing to do before you even apply for the auto loan.

- How much meter do you drive: people who need to drive a lot in their profession especially for those In the Sales man who need to travel often to adhere to their roles and responsibility will need to pay a higher insurance premium than those who are not required to drive during their working hours.
For more information about auto insurance reviews and auto insurance rates, visit AutoInsuranceEssentials.com.