How Much Does Auto Insurance Cost?
There’s no simple way to quantify how much auto insurance costs, because every policy is different. So whether you’re searching for insurance for the first time or replacing an existing policy, your goal should be to find the best coverage for the lowest price. Low prices and good coverage don’t always go together, though, which is why it’s so important to compare auto insurance quotes. And you’ll find that process worthwhile, because some providers and types of auto insurance can be as much as 50 percent less.
The following are some of the numerous factors that affect your auto insurance costs and will give you a good idea whether you should expect low or high quotes:
Your age
People under 25 years old are in the highest risk group, so they can expect to pay quite a bit for car insurance. Statistics show that people between 50 and 65 have the best driving records, so they usually pay lower premiums.
Your credit rating
Believe it or not, car insurance companies see your credit rating as an indication of your trustworthiness. That’s yet another reason to monitor your credit to make sure nothing happens to negatively affect your credit score.
Where you live
Auto insurance companies base their rates on how congested the traffic is and how often vehicles are stolen in any given area. If you live in a rural area with sparse traffic and there’s little incidence of theft, you’ll have low rates. By contrast, if you live in a crowded city where car thefts are frequent, you can expect to pay quite a bit extra.
Whether you’re married
Right or wrong, it’s assumed that married people have more stability in their lives. As a result, a married person will have lower rates than a single person, even if they live in the same neighborhood and have identical driving records.
Driving violations
The number of accidents and tickets you have has a direct affect on your car insurance rates. This is because insurance companies assume if you’ve already had problems, there’ll be more in the future. Some companies charge a higher premium for as many as five years beyond the violation dates. The good news is, though, your premiums will go down over time if your record stays clean.
Your vehicle’s age
If your car is old and has little value you might choose to waive comprehensive coverage, which pays for repairing or replacing your vehicle in case of theft, fire, vandalism or other hazards. If the car would cost more to insure than to fix or replace, you can save money by not having to pay for this portion of the policy.
Special discounts
You may qualify for a discounted rate if you’re a member of organizations such as AAA or AARP, or if you’ve taken a defensive driving class. Make sure to ask if there are any special discounts you can qualify for when you get quotes.