The second largest factor in the determination of your insurance rate, is where you reside. If your neighborhood statistically has a higher number of vehicle collision or increase chance of vandalism, your insurance premiums would likely be higher. Your cities population and number of vehicles on the road could be another factor, depending on the insurance company. As a generalization you are more likely to be involved in a collision in the city where there are a vast amount of vehicles in comparison to the country where there are far less vehicles on the road.
Auto insurance can be considered a service of offsetting risk. For example the more that you drive the higher the possibility that you could be involved in an auto accident. Drivers who need to drive longer distance commutes will reflect higher insurance premium rates as compared to someone with a shorter commute. In other words, you would receive lower insurance rates if you only utilized your vehicle on the weekends in contrast to an individual who commutes daily.
An additional cost factor that directly affects the price of your vehicle insurance is in reflection to you as an individual. Some variables used to reach the sum amount of your insurance policy include your age, sex, marital status and your driving history. Statistically speaking there are a higher number of accidents involving individuals under the age of 25. Being a youth and the lack of extensive driving experience will result in higher rates. Accident rates also tend to me higher for young single males. A good driving history can help you offset some of the cost, since having traffic violations or accidents will result in you being more of a risk factor and thus having higher insurance rates.
Although the only factors that cause your insurance rates to increase have been discussed, below we will go over some methods to help keep your insurance cost down.
1. If you have plans on purchasing a new vehicle, consider that purchase to be a vehicle that will get the seal of approval and low rates from insurance companies. You can always search the web to find out which types of vehicles are likely to receive the lowest insurance coverage rates.
2. Be informed on which type of discounts are offered, such as good student discounts or multiple vehicle policy discounts. Ask your potential insurance company about any other insurance discounts that may be available to you, it never hurts to ask.
3. Another item that could be good for your wallet and the environment is taking into consideration carpooling or the use of public transportation to commuting to work. The less miles you drive the less you have to pay for vehicle insurance coverage.
4. Last but not least, drive safely! Insurance companies dislike insuring accident-prone drivers. So obey the rules of the road, assure to give yourself plenty of time prior to heading to any destination.
Don’t forget to ask your insurance company about any discounts or promotions. A little extra green in your pocket wouldn’t hurt.
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