How Can You Save Money On Auto Insurance Rates?

Auto insurance rates tend to vary in regards to various aspects like people’s age, profession, marital status, gender and locality where they live in. Most people end up paying less than 1000 USD barring some unfavorable circumstances in the past like the DUI conviction.  Unfortunately, business personnel also fall under this category of high premium payers usually paying more than 1400 USD per month.

Factors That Determine Auto Insurance Rates

As we know that the auto insurance rates vary significantly from one service to another. Various factors conclude a person’s auto insurance rates.

Driving Record – first and foremost, the driving record of an individual plays an extremely imperative role in the payment of the premiums of the auto insurance policy. In case a person has been in an accident that is determined to be their fault then their rates are certainly going to go up. Generally, this is because the stats suggest that, such drivers may have repetitive accidents or violations within 3 years.

For all those drivers who possess poor records and are unable to find insurance cover, there is specific state-regulated insurance plans called as the ‘assigned risk pools’ or ‘shared markets’.  In such insurance plans, the state specifies a company to offer insurance plans for the high-risk drivers. On the other hand, not all states offer such plans and you will have to check with your state’s department of insurance.

Marital Status

This is yet another imperative aspect that greatly influences the auto insurance rates. Checking the stats, the newlywed drivers tend to have the maller number of accidents compared to the young drivers. Therefore, the newlywed drivers have to pay lower insurance premiums.

Your Location

Auto insurance rates vary as per your locality as well. For example, auto insurance rates in Texas differ from California insurance rates. This is because of the risks that are involved, such as the accidents, risks of theft and weather. Rates greatly differ from one group of people to others. For example, people living in smaller towns, generally have less accidents compared to those who live in big cities. Therefore, they have to pay less for their auto insurance.

Age

Age also influences the auto insurance rates. As a rule, drivers who are below the age group of 25 are more prone to accidents than the older drivers, therefore resulting in higher premium payments. Drivers that are between the ages of 50 to 70 have lowest accident rates and therefore tend to receive discounts.

Auto insurance policies come with different options and people pick them as per their requirements, which affects the auto insurance rates as well as the premiums they pay. To avoid this, people can always increase the deductible or simply eliminate some o the perky options that are useless to them.