The Factors That Determine Your Auto Insurance Premium

There are many factors that affect the premium you will pay for your auto insurance. Each is a statistically based risk for a specific section of the population or an individualk. The higher the risk associated with a person, the more he or she will have to pay for insurance cover.

* Gender: Women are statistically safer drivers, but that trend is changing as the ratio of female drivers increases.
* Age: Statistics show that drivers under the age of 25 are at greater risk of being involved in an accident than those over age 25. Drivers between the ages of 50 and 65 generally have the safest records.
* Marital Status: A married person will pay less than a single person with an identical driving record.

Some of the following factors could be altered to decrease your insurance premium.
* Geography: Where you live makes a difference. People living in areas with little traffic are likely to spend less on insurance than those living in cities or suburbs because areas with a lot of traffic naturally tend to see more accidents. Some areas also have a higher rate of vehicle crimes, which can result in a higher premium.
* Occupation: Insurers have statistically found a connection between your occupation and risk. For instance professional sportsmen are deemed a high risk and a personal banker a low risk.
* Credit Rating: Many insurance companies view having a poor, or even no credit history as suggestive of higher risk and thus, charge you a higher premium. Work on your credit rating. A better credit score will save on insurance premiums.
* Vehicle Type/Value: A cheap auto will cost less to insure than an expensive auto, especially an imported one.
Equally a 1.0Lt engined auto will be cheaper than a 3.5Lt auto.
* Driving Violations: Having an accident or moving violations on your record (speeding tickets, DWI, reckless driving, etc.) will put you at a higher risk for accidents in the eyes of the insurance company and will likely mean a higher premium. Some insurance companies will penalize you for your record for as many as five years from when the incident occurred. However, keep in mind, as your record improves, your premium will get lower.
* Accident Claims: A driving record that is clean and free of accidents will be a great benefit when applying for auto cover.
* Experience: Years of driving experience will be considered.

Even more factors.
* Education: A higher education can save on your premiums.
* Miles driven each year
* Business use of the vehicle
* Whether or not you currently have auto insurance and how high are your limits
* Theft and security protection devices (often results in discounts)
* Multiple drivers (two named drivers will make a big saving)

Several of these factors can be worked on to help reduce your premium. For instance managing your car use and reducing your annual mileage may reduce your premium and can save on gas expenditure as well. Better still cycle to the 7/11 store and improve your health at the same time.

Insurance companies don’t all read from the same prayer book so shop around for online auto insurance quotes to find what is best for you.