Car Insurance Rate Factors that are Under Your Control

Did you ever wonder what the major factors that impact your insurance coverage are? Most people do. I am going to use a pretty broad brush to go over the factors that should concern you.

1. You.
2. Your Car.
3. Your Location.

You are one of the main factors in determining your car insurance rate. By 'you' I am referring to your age, your driving record, your education, and your accident history. What is it about 'you' that is under your control? Well, it isn't your age. It is your driving record and/or your loss history to some extent, but accidents and tickets aren't always under our control. Mainly I am referring to your ability to educate yourself by taking a defensive driving class. A defensive driving class will save you about 10% on your insurance premiums with most companies. The classes are usually about $30 and some employers will offer them for free.

Your Car doesn't have to be the latest 300hp sports coupe, or the very expensive to repair foreign SUV. You can select a car that costs less to insure and keep your rate down in the process. Now, you probably aren't going to win any races with a conservative vehicle, but in the long run, you will save a couple of bucks. Talk to your agent, or company, about the best vehicles in terms of insurance costs. You might be surprised to find that it isn't all about the cost of the vehicle. The safety rating and the average repair cost are also major factors in determining a rate. Shop for your next car with list in hand.

Your Location is going to be the factor that can cause the most swing in your insurance rate. You might be shocked at the difference in rate from one side of the street to the next (they have to draw the line somewhere). I have seen cases, where someone on one side of the street was paying $500 per year. If they moved across the street, they would have paid $1,500 per year. Most people who do not own their own home will move every couple of years. Be sure to talk to your agent about insurance costs from one area to the next. You would hate to sign a lease on a place that is $50 a monthly less, only to find that your insurance cost is now $100 a month more.

Of course, there is a bit more to it than that, but remember, this is the broad brush version of this story and if you want further detail, seek advice from an insurance company or agent, not a web article.

Free car insurance quotes