Auto insurance companies calculate premiums differently for each person. Reason being, different factors come into place for different people. Two people may be similar by the look, but when you dig deeper, one may come out as riskier than the other, hence, becoming a liability to the insurer.
And so, the insurer charges him a higher premium to cover for the cost of insurance. In this article, you will learn some of the factors that Raleigh auto insurance companies use to determine how much premiums they will charge you. So, read on.
Age
In many, if not all, states, age comes out as the most significant determinant when insurers are calculating premium rates. This is because, there are ages that are considered accident prone, like the teen ages, the old age, as well as the 20-25 years.
If you are within any of these age groups, your premiums will definitely be higher but will drop between the ages of 25-50.
Driving Experience
Your driving license will determine how long you have been driving, of course, so if you took your license later in life, then your premiums will be high as compared to if you had taken it earlier. The sooner you receive your license, the more years of experience you are considered to have.
And the more experienced you are, the fewer accidents you are likely to cause.
The Type of Car You Drive
This is rather obvious. An expensive car is not only pricey to maintain but to repair and replace as well. And so, insurers will definitely charge you more for such a vehicle. There are also some types of expensive cars that can tell more about the driver’s characters.
For instance, a person driving a sports car is most likely to be thrilled by speed. This means they are more likely to cause accidents multiple times.
Where You Live
When calculating the premium, the copywriter will pull out data on the number of accidents and crime rate in your area. If it is high, then your premium will equally be high. This is because your car stands a higher chance of theft and accidents.
You are also likely to pay a higher premium if you live in an expensive state, although this is not a common factor with auto insurance companies.
The Miles Covered Each Year
The fewer miles you drive each year, the less premium you will be charged. Fewer miles mean that your car has not been on the road for long, reducing the probability of an accident. Some insurers even give you the option of paying your insurance by the mile, which is a cheaper option if you cover a few miles, like say if your place of work is close to your home.
The Extra Safety Features in Your Car
Having extra safety features like airbags or antilock brakes lower your premiums through discounts. The features may be expensive to install, yes, but they will lower your premium as well as keep you safe.
On the same note, anti-theft devices such as alarms will also qualify you for a discount.
Conclusion
While there isn’t much you can do about some factors, such as your age, you can capitalize on the factors that you can manipulate to lower your premiums – things like safety features, driving fewer miles among others. However, the ultimate goal should not be to have lower premiums but to get the best out of your auto insurance.