When assessing your rate, insurance companies will look at your age, gender, credit score, location and driving background. Based on all these information, it will determine how big of a risk you are. The lower your risk, the lower your insurance premium will be.
How do you affect your insurance rate?
The younger driver you are, the less experience you have. Insurance companies put value in how much experience you have. You are most likely to have an accident when you are aged below 25 than any other age. If you have a history of traffic violations and accidents, this will surely increase your rate as well. On the other hand, you can help reduce your insurance price by attending safety classes.
How does location affect your insurance rate?
Where you live also has an effect on insurance premiums. If you live in a high crime area, this will increase the risk of loss or damage to your car. If you drive to your work and live far away from it, this can also increase your rate. Each state also has a minimum required coverage. Your insurance will need to at least match that minimum requirement.
What about my car?
The type of car you drive also has great effect. You can not expect the same rate for a luxury car compared to a regular compact car. How much is your car? Is it more expensive to fix than other cars? High performance parts will cost more. What type of car is it? There is a direct correlation of horsepower to premiums. The higher the horsepower means you tend to drive it at faster speeds. This will also increase your rate.
What can you do about it?
Being a safe driver is a good start. Keep your record clean by avoiding traffic violations. Being a responsible driver not only saves you money but can also save lives. Purchase a car that suits your needs. The extra horsepower can cost you. If you really want to save on car insurance premiums, take charge of the factors you can control.
At Sungate Insurance Agency, we aim to provide comprehensive insurance policies that makes your life easier. You can get more information about our products and services by calling our agency at (407) 878-7979. Get your free quote today by CLICKING HERE.