4 Factors That Determine Your Auto Insurance Rates
Auto insurance rates are definitely something that you want to keep as low as possible. After all, the cost of owning a car is high, you don't want to add extra expense on top of that by paying too much for auto insurance, as well. There are some factors that you have a little bit of control over and others that you do not. Knowing what factors are going to affect your rate can help you to better understand what you are currently paying and why. Here are the four major factors in determining your rates:
- Coverage Levels: The one factor that you have major control over in determining your auto insurance rates is the amount of coverage that you have on your policy. The more coverage that you have then the more you are going to pay for your auto insurance. However, just because you want to pay the lowest possible doesn't mean that you should choose the lowest amount of coverage. Select deductibles that you know you can afford in the case of a car accident or other damages. Also, always consider adding additional coverage that you feel you may need, such as comprehensive, which will cover you in the case that your car is vandalized, stolen, or crushed by a tree after a severe storm.
- Driving History: The way that you can control this factor that helps determine rates is by ensuring that you avoid making claims and receiving tickets. The less claims that you make and if you have no tickets on your record, then the less you are going to be seen as a high risk driver. Only make claims if you know that the damage done is going to need to be covered so you can afford the repairs.
- Mileage: The number of miles that you drive are also going to affect rates. The less you drive, then the less you are going to be paying for auto insurance because you aren't going to be seen as a high risk. This is because you are not on the road as often. Try to avoid driving more than what is necessary to ensure that your miles don't drastically increase by the time you renew your auto insurance policy.
- Vehicle Type: Finally, the vehicle type that you own is going to affect rates. The anti-theft features that you have will lower rates and if you are driving a vehicle that has high safety ratings, then you will be paying less, as well. The only thing that will not affect the rates is the color of the car. Many people tend to think that a red car will come with high insurance rates, but this is just a myth.
When you know some of the factors that affect auto insurance rates, you can better understand what you need to do in order to keep those rates as low as possible.
To learn more about auto insurance, visit a website like http://esiinsurance.com/.
10 December 2015