Some factors that can affect your car insurance premiums include your car, your driving habits, demographic factors, and the coverages, limits and deductibles you choose. These factors can include factors such as your age, the anti-theft features of your car, and your driving history. Your driving record includes your history of traffic violations and accidents where you were at fault. It's one of the most important factors that determines your car insurance rates.
Car insurance companies review your driving record for the past three to five years, depending on your state. If you've caused a car accident or received traffic tickets, expect to pay more for car insurance. The class and model of your car are also one of the determinants of your car insurance premium. The premium for riskier cars, such as sports cars, is generally higher compared to slower standard cars.
Cars with a higher cubic capacity or those that run on gasoline or CNG tend to have higher premiums. Car insurance companies prefer to insure safe vehicles, as they are less likely to generate costly claims. Tell your car insurance company if you get married, so your wallet can benefit from positive statistics. In California, Hawaii and Massachusetts, age won't have a direct effect on what you pay for car insurance.
It's also important to note that car insurance is regulated at the state level, so all of the factors that are used to calculate rates in every state may not be taken into account. The best way to reduce your car insurance premiums is to compare prices between insurers, take advantage of all the discounts you can, and adjust your coverage to fit your budget. In general, auto insurance premiums continue to fall every year until age 25, when rates begin to stabilize for the next few decades. When buying car insurance, your insurer will need to know several facts to quote you a premium.
Some companies use traffic violations as a factor in car insurance prices for only three years, while others keep them on record for longer. All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer. A car insurance quote you get from one company could be significantly cheaper from another company for the same coverage. For more information, see WalletHub's guides on factors that affect car insurance rates and the cheapest cars to insure.
It may take a few years, but the longer you drive without incident, the better car insurance rates you'll get. Young, inexperienced drivers will pay higher car insurance rates because they pose a greater risk of car accidents. Depending on the amount of coverage your car requires, your car insurance premium could be higher or lower. Some of the factors that affect car insurance rates are within your control, such as your credit history and whether you have ever been convicted of driving while intoxicated.
Your driving record can lower or increase your premiums, although some insurance companies may even cancel it or refuse to insure you if they think you are at too high a risk.