Imagine yourself behind the wheel of a new car and driving off into the sunset on an empty road. This is not a dream but legitimate expectations before deciding on buying a new car. These moments always bring a lot of happiness in the first days. But after you got a new vehicle, do not forget about safeness. You must also care about good car insurance, that won’t hurt your budget on a monthly basis.
Everyone is interested in getting the lowest amount of coverage while increasing their deductibles. During a meeting with your insurance company representatives, you will be able to understand how many factors play a role in determining how much your monthly payment will cost for auto insurance.
Information about what can affect your rate can help to make a more informed decision when selecting an insurance company. In this article, we will tell you about the most important things that you need to know to reduce expenses when buying car insurance.
Table of contents
Your age and gender
Your age and gender will always play a prominent role in determining the cost of your insurance. Men are more likely to get into accidents than women are, and the same applies to male teenagers. In contrast, older women have worse rates than older men have because they get into more major accidents. However, there is not a big difference in premium costs in this case.
In densely populated areas, there is a higher probability that you will get in a car accident. It is also necessary to include a greater likelihood of theft of your vehicle and fatal incident probability. Your rate, in this case, will be much higher than in less populated areas.
Many insurance companies also take into account economic factors of the particular district. A significant unemployment rate can cause a large number of uninsured drivers because many people can’t afford to keep their car or pay for insurance. Also, if a breakdown occurs, service repairs in these area will cost you more based on these economic factors.
Your marital status
According to statistics, married people have fewer accidental than single and thus paying less for insurance. However, that does not appeal to all our readers to immediately rush into finding the perfect partner. Your driving history still plays an important role. Social status will not allow you to reduced rate immediately after the wedding.
Your premium will skyrocket instantly if the insurance company finds out that you’re working as a taxi, truck or delivery driver. On the other hand, jobs that don’t require people to sit behind the wheel too often (like airplane pilots or any office jobs) can expect less than the standard rate. It is mostly based on the fact that they spend less time on the road. However, such jobs as paramedics and police officers often receive a decent rate, as they are seen to drive more cautiously than a typical driver does.
Your vehicle’s age
Some drivers may think that if you drive a 15-20-year-old car, you do not need comprehensive or collision coverage. This only works for the countryside, where the probability of an accident is minimal. In the urban environment, there is an increased risk of getting into a car crash, which affects the price of insurance.
New vehicles have higher collision coverage rates. Mostly because to replace a new car is much more complicated and expensive than it is with an old car. Consequently, this is reflected in the higher premiums on a new vehicle.
Your vehicle size
Cars with the larger engine relative to the size of the car will cost you more than a small car with a small engine. Thus, a sports car like the Audi S5 has higher insurance premiums than a small car like Nissan Micra. However, larger cars with higher safety ratings will be cheaper to insurance than smaller cars with weaker ratings.
Likelihood of theft
Before buying a vehicle, we highly recommend you check out a list of the most stolen cars in the last year. Such popular vehicles in Canada as the Honda Civic or Toyota Camry are always on the top of the list, making their insurance more expensive than other cars outside of this list. However, if you have installed a good alarm system, and multiple anti-theft features, it can help you to reduce premium.
Your driving history
Insurance companies love people who often get into accidents and accumulate tickets because they will pay the highest insurance premiums. Also, your insurance rate could be affected by recent auto insurance claims. An insurer may think that you are more likely to file a new claim, in contrast to those drivers who have never submitted a claim to the insurance company before. It is important to be careful and know your limits. In a case of numerous violations, insurance companies can simply refuse to provide you insurance at all.
However, do not worry in advance. Many of these blemishes after some time lose their effect. Non-injury accidents and tickets no longer affect your rate after three years. Injury accidents start to lose their affect after five years. So, if you had a wild period with numerous road incidents and tickets, try to drive your car gently over the next couple of years.
Insurance payments have become as important as gasoline and maintenance costs. Thus, steps to reduce your insurance rate will only positively affect your family budget. Experts recommend every 2-3 years to compare prices of insurance companies. Many of them tend to raise prices for their services. Also, always ask about available discounts when you purchase bundles (car+home). Moreover, do not forget about discounts for certain groups such as students. Happy shopping for your car insurance!