| The premium that drivers pay for auto insurance | | | | Credit Rating |
| depends on certain factors, specifically called risk | | | | A better credit rating will save most drivers from |
| factors. Based on previous driving records, miles | | | | higher premiums since many insurance companies |
| driven per year, age, etc, a driver's risk factor is | | | | believe that poor credit history is susceptible to |
| evaluated and is directly proportional to the insurance | | | | higher risks. |
| premium he or she must pay. | | | | Geography |
| To make sure you pay the lowest premiums | | | | The place where you reside can also dictate your |
| possible, think about these factors and what you can | | | | insurance premiums. Living in congested cities or areas |
| do to make them advantageous for your situation: | | | | with a lot of traffic prone to vehicular accidents |
| Driving Violations and Accidents | | | | raises the risk factor of drivers. High crime rate, |
| Insurance companies have one thing in mind: a | | | | specifically of vehicle thefts, also leads insurance |
| significant number of accidents or moving violations | | | | companies to charge higher premiums. |
| equals to greater accident risk. Some insurance | | | | Education |
| companies even penalize drivers with a bad record, | | | | Drivers with higher educational attainment are |
| which usually lasts for a number of years. Bottom line | | | | charged with lower premiums. |
| is, the more driving violations you have, the higher | | | | Others |
| the premium. If you want your premiums to | | | | Years of driving experience, lower miles driven each |
| decrease, keep your record clean. | | | | year, theft protection devices and multiple cars and |
| Vehicle Type | | | | drivers also offer opportunity for premium discounts. |
| This is where insurance companies and car owners | | | | Some factors which cannot be adjusted, such as |
| understand each other's demands. Car owners of the | | | | age, gender, and marital status can also affect a |
| latest, most expensive models usually get insurance | | | | driver's risk factor. Most insurance companies see |
| with better coverage, which means higher premiums. | | | | drivers under the age of 25 with higher potential risk |
| Cheap cars cost less to insure because car owners | | | | of being in an accident. Women are also considered |
| have the option to disregard other types of | | | | as safer drivers than men, while a married person has |
| coverage that are not applicable to their vehicles. | | | | lower premiums compared to a single one with the |
| Occupation | | | | same driving record. |
| No, they don't check your salary. Not yet, at least. | | | | By calculating your risk factors, you can easily get |
| For insurance companies, a significant relationship | | | | lower premiums which could save you a lot for the |
| exists between the business use of your vehicle and | | | | years to come. Just remember though, each |
| the premium you must pay. If your job description | | | | insurance company has a different take on insurance |
| includes long hours of driving such as being a | | | | premiums, so it's always best to compare the rates |
| door-to-door salesman, expect a higher premium. | | | | of multiple companies for your particular situation. |