When it comes to auto insurance, there are a variety of elements that can influence your premiums. These include your car, driving habits, demographic factors, and the coverages, limits and deductibles you choose. Generally speaking, the most important elements that affect your car insurance rates are your age, gender, marital status, driving history, and credit history. However, the make and model of your car and its features can also play a role in determining your premiums. In addition to these factors, the amount you drive is also taken into account.
If you drive less than 12,000 miles a year, you may be eligible for reduced rates. Some insurers even offer pay-per-mile car insurance, where you pay a monthly base amount plus a per-mile charge for each additional mile traveled. Discounts may also be available depending on your age or for taking road safety courses. Employers and organizations often provide discounts on auto insurance to their employees or members. Farmers Insurance even offers discounts for alternative fuel vehicles.
Where you live is also an important factor in determining the cost of your car insurance. Drivers in urban areas tend to pay higher insurance rates than those in rural areas due to the higher risk of accidents and thefts. Cities with higher crime rates (e.g. Dallas, Chicago, New Orleans) may also result in higher insurance premiums. By understanding the various elements that go into setting the price of car insurance, you can get the best possible rates. Knowing what to look for can help you save money on your auto insurance premiums.