Factors That Affect Your Car Insurance Premiums

A study by Zebra established that the average American driver's car insurance is worth more than $1,300 per year. When shopping for car insurance, there are certain things to bear in mind if you want to pay low premiums. Here is a look at how the car you drive, your driving habits, coverage, and discounts affect your insurance premiums.

Buy an Insurance Friendly Car

The car you drive affects your auto insurance premiums. When buying a new car, remember to avoid expensive cars if you want low premiums. The cost of your collision coverage is determined based on the value of your car.

However, beyond costs, some vehicles carry higher insurance premiums than others. For example, sports cars attract high premiums. Compare the value of different cars and the premiums they are fetching to ensure you buy a car that is insurance-friendly.

Driving Habits

Drivers with fewer accidents than other drivers will most likely pay lower premiums. You should also avoid traffic violations to keep your driving record clean. Also, the more you drive, the higher the premiums will be. Public transportation and carpooling are some of the options that can help you minimize your annual mileage and lower your insurance premiums. Drivers who also use their cars for business or drive at night are also subjected to higher premiums.

New drivers will most likely pay higher premiums than veteran drivers. This is because they pose a higher risk of accidents than experienced drivers. Additionally, if your driving record is below average, you can lower your premiums by completing a defensive driving course. Some insurance companies will only consider courses that you completed recently.

Type of Coverage

The coverage you choose will also affect your insurance premiums. Most states require car owners to have liability insurance. Some of the other coverages you can have include uninsured/underinsured motorists, collision coverage, and personal injury protection. Other protections you may consider include labor and towing costs, sound system coverage, and rental reimbursement.

The limit on your coverage will also affect your insurance premiums. Each cover comes with its own limit, and you can adjust it to meet your specific needs. The more coverage you buy, the higher your premiums. Also, deductibles affect your insurance payments. This is the amount that you pay before the insurance steps in to pay for a loss. If you set a high deductible, you pay less for your insurance policy.

For more information about auto insurance, contact a local provider.