Life is like a jigsaw puzzle. You must know all the facts and pertinent information before making a choice. To see the entire picture, you need every piece of the puzzle in its place.
Like the way your Auto Insurance Policy Price being determined, you need some pieces of information or maybe, a common knowledge, as to what the insurance companies are looking for when determining how much your coverage will cost.
There are six major areas that determine your auto insurance policy price. The first is your driving record. A better driving record lowers the total cost of your auto insurance. Avoiding auto accidents, speeding tickets and other driving convictions can keep your clean record that will not cause your rates to be outrageous.
Do a self-check sometimes to see the impact of raising and lowering your deductibles and coverage amounts on the price of your insurance. Raising a deductible lowers your monthly payments while increasing the deductible has the opposite effect. The same goes for the actual coverage amounts.
Studies show that younger drivers are involved in more accidents than older drivers. Inexperience people behind the wheel of an automobile may potentially be involved in a collision. Generally, most insurance companies charge more for individuals under the age of 25.
Thank in large part to theft, vehicular costs and safety records because some cars rate a higher premium over other vehicles. As if it wasn’t bad enough, the amount of annual miles you place on your vehicle through driving can increase your auto policy. If you exceed to the total average of 10,00 miles in a year, except a rate increase because you also increase the potential to be involved in an auto accident.
If you live in a big city, you’ll pay more for your auto insurance policy compared to those who live in a nice farm out in the country. It’s because the city has more thefts and has higher rate of accidents, which lead to higher costs absorbed by the insurance company. It was passed along to the consumer when the insurance companies determine you auto insurance policy price.
Hopefully, this information can help you focus in some areas within your auto policy that you can review you insurance agent in the hopes of actually lowering your auto insurance rates instead of raising them. Now, did you see the whole picture of the puzzle?