It is quite common to hear people complaining about their insurance rates. However, not everybody takes the time to see what all the contributing factors are, and what they could do to reduce these premiums.
Among others, these are a few of the factors involved:
1. Your driving history: Do you have a history of accidents, reckless driving, or regular traffic violations? If so, you are a bigger risk, and will have to pay more.
2. Your age: Younger drivers, besides being inexperienced, are also regarded as less responsible, and pose more of a risk.
3. Your marital status: Firstly, married people tend to be more responsible in general, and you will pay less for your wife driving your car than you would for your girlfriend.
4. Your credit history: People who do not pay their bills on time are considered irresponsible, and the company responds with higher premiums.
5. Location: The area where you live will make a huge impact. More cars on the road mean more probabilities for collision from a purely mathematical point of view, and higher population density also leads to higher crime rates, adding to the risk of theft.
6. Your gender: It has been (although amidst much controversy) proven statistically that women are “better” drivers. Due to more responsible driving habits, women pose less of a risk, qualifying for better auto insurance rates.
7. The vehicle itself: Certain brand names and models are more popular among car thieves, posing a higher risk of theft. The safety features on the vehicle, however, such as ABS braking can reduce the risk of collision, and this would be to your benefit.
8. The color of your vehicle: Statistically, vehicles of certain colors are more likely to be involved in accidents. It has nothing to do with the personality or habits of the person driving, but instead it is all about visibility. The least likely color to go unnoticed, resulting in an accident, is yellow, followed by white. The worst color vehicle to own is (apparently) green.
By taking these factors into consideration, it is possible to lower your insurance premiums. Carefully choosing your vehicle, the area in which you live, and sorting out your credit report (it may have errors on it contributing to your insurance premiums) will help lower the rates you pay.