Finding Great Insurance

Are you not thrilled with your current car insurance rate or are you a young adult about to get your own car insurance for the first time? There are a number of different criteria that go into how a car insurance provider determines your car insurance premium. Here are some of those factors and what you can do to possibly lower your rate.

Driving History and Driving Age 

If you are a newer or younger driver, you can expect your premium to be more expensive because younger drivers are deemed to be more of a risk. The best way to fix this issue is to simply demonstrate a solid driving history over time. A clean record will eventually lower your rate, especially as you age out of your young adult years at the same time.

Personal Versus Business Use and Annual Mileage

Do you plan on using the car every single day as part of a commute to work? Will the car be used as part of your small business and you'll be driving all around town every day? You may be asked what the car will be used for and what your expected annual mileage is with the vehicle. A vehicle that will be used more often may have a higher rate. If you already have a policy and you know your annual mileage has gone down in recent years because you now work from home for other reasons, let your insurance provider know this and you might lower your rate.

Age or Type of Car

A brand new, fancy sports car is going to cost more to insure than an older typical commuter vehicle. This can work side by side with the age of the driver of driving history as previously described. A young adult that buys a fast sports car is not going to enjoy their monthly premium in all likelihood. If you choose a more conservative or older vehicle, you might be able to get your premium down.

Location, Location, Location

Do you live in an area where there are a lot of theft issues or break-ins leading to smashed car windows? You can expect your comprehensive coverage out of collision to be more expensive to address this additional risk.

Deductible and Optional Coverage 

When you have an incident, you will have to pay a deductible that covers a portion of the repairs. If you agree to pay a higher deductible, your monthly premium will be lower. Keep in mind that insurance providers may also offer optional coverage for a wide variety of things. Some may be necessary for you depending on your individual use case but others may not. Talk to a local car insurance agent today to discuss your options.