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Monday, 4 March, 2013

Factors that affect what you pay for auto insurance

17421570_SYou may have heard that red cars cost more to insure. Or that white cars cost less. In reality, the color of your car has no effect on what you pay for auto insurance. Surprised? There are plenty of other myths about what drives the cost of auto insurance. So what really matters to insurance companies? Check out this list of factors that do matter to insurance companies as they determine the cost of your auto insurance policy:

  • Your driving record. Drivers with previous violations or accidents are considered to be higher risk and may pay more than those with no violations or accidents on their record.
  • Your gender and age. Generally, men have more accidents than women. Also, certain age groups, such as young adults under the age of 25, have more claims.
  • Your marital status. As a group, married people show lower rates of claims than single drivers.
  • Vehicle use. Higher annual mileage results in higher exposure to risk and possibly, higher premiums.
  • Make and model of your vehicle. Car shopping? Call your insurance agent before you buy. Some cars definitely cost more to insure than others!