The price of insurance varies greatly from person to person, due to the amount of factors that contribute to determining monthly premiums. Items such as demographic information, coverage type, automobile model, amount of travel and driving record are all taken into consideration.
Take some time to examine the different items that influence car insurance rates to learn how much you will pay.
Age, Sex and Marital Status
If you are under age of 25, you will likely have to pay more, simply because younger drivers are extremely accident prone. Since they get into more wrecks than their female counterparts, young single males tend to pay the most.
Marital status also greatly affects insurance rates. If you don’t have a bad driving record, you will see your insurance rate substantially reduced when you get married. Check out this blog about car insurance for married couples to learn more.
Amount of Coverage
When you sign up for insurance, providers will generally allow you to choose your deductibles. Higher deductibles will mean lower monthly payments, while a lower deductible will result in higher monthly payments.
You can also add other coverages beyond what the state requires for more financial protection. By choosing to tack on additional coverages, you will raise your monthly premium, but it will keep you safe from unexpected emergencies.
Car Type
Another important factor in coming up with your monthly insurance premium is the type of car you drive. By researching data from multiple customer claims, insurance companies have been able to put together vehicle safety ratings and give discounts to individuals that drive safer vehicles.
Here are some of the types of items insurers take into consideration in order to determine vehicle safety ratings.
- Vehicle size
- Age of car
- Likelihood of theft
Your insurance will become more expensive if you drive a vehicle that is susceptible to damage, injury or theft. But, on the upside, you can get a lower rate if you have a vehicle that poses less risks.
Driving Distance
Many people don’t know this, but insurance providers look at the average amount of miles you drive. People who drive more for business or other reasons pay more than those who don’t. The reasoning is that the more you drive, the more likely you are to get into a wreck.
You can avoid racking up too many miles by joining a carpool, riding your bike or taking public transportation.
Driving Record
Additionally, your driving record has a big affect on how much your car insurance premium will be. Have you been in an accident lately, received any tickets, or made previous auto insurance claims? Then your insurance premium will likely be higher. If your record is too bad, some insurance companies may refuse to insure you altogether.
Learn How Much Car Insurance Will Cost You
By evaluating where you fit within these categories, you will be able to get a good idea as to how much your car insurance will cost. You can also get the average insurance rate by state by visiting Value Penguin. Just remember that these rates are averages and may not reflect what you will actually pay, due to the amount of variation between customers.
If you would like to find out how much car insurance will cost you, you can receive a FREE quote from Royce Williams. We provide quality and affordable insurance options for customers in Middle Tennessee. Give us a call today at (615) 356-4800 to learn more.
