When shopping around for the best insurance coverage at an affordable price, it can be tempting to reduce your costs by raising your deductibles or changing up your coverage levels. But you may not realize that your auto insurance costs are actually determined by many factors. And while some of these factors can be changed many of them are fixed and out of your control. Keep reading to learn more about the factors you cannot change and what they mean for your overall insurance premium.
Demographic Factors
1. Gender
Studies show that men spend more time behind the wheel and are more likely to engage in risky driving behaviors. For these reasons, they often pay higher car insurance costs than women.
2. Age
Younger drivers are also much more likely to be involved in an auto accident, meaning that they are riskier to insure and typically have bigger insurance premiums. However, once young drivers reach the age of 25, their car insurance rates should start to go down. But senior drivers are more likely to get into accidents as they age. So, its reasonable to expect your rates to go back up again in as you enter into your retirement years.
3. Location
Where you live also plays a big factor in your auto insurance costs. If you live in an expensive area, you’ll probably pay more money. Additionally, other locational factors like traffic accidents, the number of thefts near your home or living in a densely populated neighborhood can affect your insurance premium.
4. Marital Status
Did you know that married drivers tend to be involved in fewer traffic accidents than single drivers? While much of your rate still depends on your driving record men who get married, have a clean driving record, and no accidents can see significant savings over unmarried men with a similar driving profile.
Vehicle-Related Factors
1. Vehicle Size and Type
Sports cars or expensive luxury vehicles cost more to insure than your average commuter vehicle. For example, if you’re driving the newest Ferrari model, you’ll pay more for auto insurance than your neighbor with an affordable mini-van. Additionally, larger cars are generally safer than their smaller counterparts. This means that they carry higher safety ratings and can help to save you quite a bit on your auto insurance coverage.
2. Safety Rating
Speaking of safety, if your car has standard safety features like antilock brakes, automatic seatbelts, and airbags, you’ll save more on car insurance coverage.
3. Vehicle Age
While the cost to repair an older car after an accident is fairly similar to repairing newer vehicles, replacing an older car that has been totaled is often a different story. Significant repairs for older cars can often add up to more than the car is currently worth, so many owners in this situation choose to drop collision coverage, which can lower your overall premium. However, the cost to replace a new car will be significantly higher and translate to a bigger insurance premium.
Contact Mooney Insurance Today
While there are many factors related to your insurance premiums that you can control, keep in mind that these fixed factors can’t be changed. Want to learn more about the factors that determine your auto insurance rates? At Mooney Insurance, our local agents are here to help! Call (520) 751-0502 or contact our friendly team today for more information on the benefits of comprehensive insurance protection and be sure to request a free quote.
