Auto Insurance Premium Factors

By Dean Hood

Everyone who owns a motor vehicle has to buy auto insurance, therefore this becomes a significant part of your budget. You need to have a good understanding of how vehicle insurance premiums are established and here are the major factors that are considered when developing your rates:

Age is an important factor. The highest risk fall between ages 16 and 23 and the lowest are ages 40 to 50.

Gender has revealed that women are by far safer drivers than their male counterparts.

If the neighborhood you live in is a quiet neighborhood, where there is less traffic and a low crime a rate (vs) a part of the city with a high rate of theft and vandalism, you can expect higher car insurance premium.

A poor driving history that has strapped you with traffic violations, DUI/DWI or reckless driving can be a detriment to you. Some insurance companies will immediately discard your application if you have a bad driving record; on the other hand, if you have a good driving record you can expect lower premiums.

Purchasing a luxury car can jump your premiums for the obvious reason repairs on these models are costly (vs) cheaper models. Also buying a quality used car will put you in a much lower premium calculation class.

Your credit rating signifies a direct relation to creditable and responsible life styles. Statically you will be considered a safer and a more responsible driver and pose less risk for the insurance company.

These are the generally accepted factors auto insurance companies use to calculate premiums. As you will note, some factors you have no control over, such as your gender, your age, and possibly your location.

Take time to make yourself cognizant of these factors that can affect your auto insurance rates. It will pay you to work to improve the ones that you can control such as keeping your policy current, the type of car you buy, and so on. Protect your vehicle from damage and theft and above all, drive responsibly. Not only do you want to keep your premiums in line, you want to keep you and your loved ones safe. For more tips on auto insurance go to Georgia auto insurance calculator Article Source: http://EzineArticles.com/?expert=Dean_Hood