Car insurance premiums differ from person to person or family to family. There are multiple factors that insurance companies use to determine a person’s level of risk when it comes to driving an automobile. These factors may change over time resulting in fluctuations in your auto insurance premiums. Understanding why and how these particular factors are used is important.
In the eyes of an insurance company, a younger driver has less experience and is a much higher risk than someone who has several years of driving experience. Younger drivers can prove responsibility by getting good grades in school or completing a defensive driving course. The same is true for older drivers as well when it comes to defensive driving classes.
The more miles your car has, the lower its value. It also means that you spend more time on the road. The more time you spend on the road, the more likely you are to be involved in an accident. If you drive for work, the mileage may not be as significant as if you were driving for pleasure.
Where you live is also a factor in how your insurance premiums are determined. If you live in a large city where accidents are more common, your premiums will naturally be higher. Rural areas with less traffic pose less of a hazard and, in turn, a reduced risk of being involved in an accident.
If you are lucky enough to be able to park your car in an enclosed garage, your premiums will be lower. An enclosed garage means less risk of a break-in. Parking on the street, even in a well-lit area, can turn your car into a target for vandals and thieves. This increases your risk of loss and may raise your premiums. The more secure your parking area, the lower your premiums may be.
Your past driving history is also an important factor. A good driving record will garner you lower premiums. At the same time, a history of accident claims and traffic citations may increase your premiums dramatically. The more tickets or citations you have may classify you as a high-risk driver, raising your auto insurance premiums.
The car you drive is a strong determining factor in calculating your premiums. Newer cars are much more expensive to repair or replace, but they also have more safety features that prevent them from being stolen or tampered with.
The number of claims you have filed in the past may also be a determining factor in how much your premiums are each month. The type of claims may also be a consideration. Accident claims are typically more costly than a claim for a break-in or theft.
Do you have additional questions about your auto insurance premiums? If so, then contact the experts at Phocus Insurance in Phoenix, Arizona. Our dedicated team is eager to assist you with all your auto insurance coverage needs today.
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