Saving money on car insurance is always a good thing. Luckily, there are many factors that affect how much you pay for car insurance. Various insurance companies calculate your premium differently, as every carrier has a different algorithm. However, the factors used in the calculations tend to be similar.

 

Here are some of the factors that affect your car insurance premiums:

 

The Car

The type of car you drive will play a huge role in the cost of insurance. Certain cars are more valuable than others. Premiums for sports cars or high-end luxury vehicles tend to be higher. Cars that have security features like anti-theft devices are eligible for safety discounts from certain carriers.

 

Time Behind the Wheel

How much you drive your car plays a huge role in the price of insurance premiums. Most insurers will look at how much use your car gets. More miles behind the wheel offer more exposures in the mind of your insurance provider.

 

Your Car’s Lifestyle

If your car lives in a great, safe neighborhood in a secure garage, then you can expect lower insurance premiums. Cars that are left out all night or stay in dangerous neighborhoods tend to need higher insurance premiums, as these cars usually have higher rates of vandalism, theft, and accidents to deal with.

 

The Driver

Demographics play a huge role in determining how much insurance one will pay. Age plays a huge role in insurance premiums. Younger drivers with less experience typically pay a lot more than older, mature drivers. Even gender can play a role in how much you’ll pay for car insurance.

 

Coverage Type

The type of coverage you choose will greatly affect your insurance premiums. Liability coverage will always be cheaper than OTC (other-than-collision) coverage. You can also get collision coverage and some optional protections. States will require a certain minimum level of auto insurance. After that, the amount of coverage you get is up to you.

 

Credit History

Believe it or not – insurers use your credit history to determine how much you pay for car insurance. Research has shown that credit history can predict future insurance claims fairly accurately. By maintaining good credit, you can positively impact how much you pay in premiums.

 

Your Driving Record

Age and gender aren’t the only factors that play a role. Car insurance premiums will be affected by a drivers’ history. If you’ve caused an accident, then you’ll always pay more for car insurance than someone who has been accident-free for years. That’s just how insurance premiums work.

 

Finding Good Match Coverage For You

At Protective Insurance Agency, we love to help you save money on premiums and find the coverage which matches your needs. However, making sure our drivers are safe on the road is much more important to us. Stay safe out there!