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Inside this Article
Auto Insurance Rate
- Can
you raise or lower your auto insurance rate?
There
are 10 factors that can raise or lower auto insurance rates
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Auto Insurance
premiums are never computed on a flat rate.
The premium payable by
each individual varies and is dependant on several
variables.
There are several
factors that are used by auto insurers to determine
the premium payable for auto insurance coverage.
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The
rate of vehicle insurance is arrived at after taking
into consideration the following:
Your Age
Generally younger drivers
are considered to be high risk and so the insurance
rates are higher.
Similarly older
drivers too pay higher auto insurance premiums
as with advancing age eyesight and coordination may
become problems that affect driving.
The
make of your car
Most insurance
companies tabulate auto insurance rates
based on the make of the vehicle. Compact cars and
sedans have lower rates while sports models, exotic
cars, and SUVs are assigned high rates of premium.
Gender is a factor too
Females get lower
rates of auto insurance while males pay higher auto
insurance premiums. Male drivers are consider high
risk individuals as compared to females. According to
statistics more accidents are caused by men than women
drivers.
Financial stability
Auto owners with great
credit scores and credit reports generally pay lower
premiums than those with bad credit scores and
reports. If you are considered to be a dependable
individual then insurance companies offer lower
premium rates.
Driving records
have a say in premiums payable
If a driver has a clean
driving record for three consecutive years then auto
insurance providers will happily extend policies
with lower premiums.
Where you stay
Those who live in the
city pay more than individuals who live in the country
or suburbs. Areas with lower crime rates and less
congestion attract lower auto insurance premium
rates. So if you live far from the maddening crowd
then you will benefit by paying much lower premiums.
How many insurance
policies you hold
If you approach for auto
insurance the same insurance company that
has you covered for life, health, hone and so on then
you would automatically be eligible for great
discounts on premiums payable for an auto insurance
policy. Since the company already knows you and
you have established credibility with them you will
receive better rates as the insurers know what amount
of risk you represent.
The condition of
the car will be considered before offering a policy
The make, how old the
vehicle is, its maintenance, and so on. A car in prime
condition will get better premium rates than a
rattletrap.
The distance
traveled per year
If you restrict the
number of miles traveled then you will be able to get auto
insurance at lower rates. To do this you need to
walk, use public transport, and car pool. Similarly a
car used only for personal purposes will warrant lower
premium than one used for business travel.
Whether or not you are
eco-friendly
If you care for the
environment and drive a non polluting vehicle then the
auto insurance premiums will be lower. Auto
insurers weigh the pros and cons of several factors
before offering a viable premium rate. As a vehicle
owner you can make an effort to lower your premium
payable by keeping in mind all the factors that will
affect your auto insurance premium.
Most important always
compare quotes from different auto insurers before
deciding on a policy.
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