Top 10 Factors Affecting Your Auto Insurance Premiums

By Dean Cecere
When it comes to shopping around for car insurance, there are many considerations to keep in mind. Whether you are a new driver or have many years of driving experience, now is as good a time as any to understand how insurance companies evaluate you in order to come up with a premium for your vehicle coverage policy. This is particularily important if you are shopping around for the cheapest car insurance, and why shouldn't you? Basically, according to many auto insurance professionals, the following is a list of the top 10 factors affecting your insurance premiums for auto protection.

1. Year, make and model of vehicle: The more a vehicle costs to repair will be more expensive to insure. Fast sporty cars will have a heftier premium than a 4 cylinder sedan, as will cars that are prone to theft, as well as newer vehicles.

2. Gender: Unfortunately, this is one you have no control over. Statistically, females have less collisions than male drivers.

3. Vehicle usage: Do you commute to work, or is the car used mainly for pleasure? How much mileage do you drive yearly?

4. Age of driver: According to insurance professionals, younger drivers pose a higher risk level. The more years you have been insured consistantly, the lower you can expect to pay.

5. Past claims: Companies look at your past driving record, especially if you have made claims in the past. If you have been involved in accidents, and have been found to be at fault, you will be considered a high risk driver.

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Top 10 Factors Affecting Your Auto Insurance Premiums

Tags: Car
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