Why Your Auto Insurance Rates Can Climb

If you drive a car, truck, motorcycle – or even an ATV, it is mandatory to have insurance coverage. But there is no standard pricing when it comes to your rates. The cost of your policy’s premium in fact is pretty individualized. It all depends on a few things.

Firstly, your vehicle coverage costs are determined by:

• The type of vehicle you drive

• The likelihood of your vehicle being stolen

• The likelihood of your vehicle being involved in an accident

• How much replacement or repair bills will amount to in the event of theft or collision damage and losses

• If your vehicle has certain safety features

To clarify it more, your auto or vehicle insurance premiums also are based upon:

• Fiscal concerns

Do you experience coverage lapses due to non-payment? Is your credit score low? Both of these underscore a risk factor for the insurance company. A tendency to file any form of insurance claim also becomes a gauge for risks that the insurance companies are worried about. All of this leads to higher premium payments.

• Driving behavior

If you have been ticketed for any moving violations, speeding or reckless driving, you are a target for higher premiums. Similarly, those who file claims about serious collisions and drivers who put in above two thousand miles per month are subject to higher than average premiums.

• Additional drivers

The more drivers on your policy – particularly teenage drivers – the more you pay. Nonetheless, an independent agency will be able to find appropriate discounts for teenagers classified as ‘good students’ that you can use until your young drivers reach the age of twenty-five.

• Your place of residence

Like your homeowners coverage, auto insurance is dependent on where you reside. Due to greater risk exposure to high traffic, street conditions, climate, crime-rate and other issues, the cost of your premium may be higher. An agency that has good relations with the leading underwriters can find ways to reduce costs if you are in a risk category.

• Your vehicle Selection

If replacement and repair costs on your car is pricier than average, your premium bill reflect that. Luxury brands such as a Cadillac, Ferrari, Mercedes, Jaguar or Porsche will generate a higher premium. Additionally, if the car your purchase has a bigger likelihood to be stolen, you will feel it when paying your insurance fee. According to recent statistics, vehicles that have a bigger theft risk include the Honda Accord, Honda Civic, Chevrolet Full-size Pickup Truck, Ford Full-Size Pickup Truck, Dodge Caravan, Grand Cherokee Jeep, Toyota Corolla and the Nissan Altima.

For resourceful bundling and discount tips that get you lowest quotes, speak to the specialists from a reputable experienced insurance agency. When it comes to insurance, they’re the best friends you have!



Source by M Wyzanski

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