When shopping for auto insurance, you might be shocked at the 2013 rates. Will they increase? Chances are better than average that they will. However, when you consider the factors that are used to calculate insurance premiums, you can understand why they are constantly increasing.
Your best strategy is to be informed about the insurance coverage that you actually need. Although states require minimum coverage, you may be satisfied with that amount. On the other hand, you may desire more coverage. Since an informed buyer gets the best value for his dollar, you should learn all you can about auto insurance.
Factors Used to Calculate Insurance Premiums
- · The area in which you live
If you live in a high-crime area, you your rates will be high. Since the insurance companies are taking the risks of vandalism, they know that you will probably file more claims than other drivers.
- · Age and Gender
Insurance companies analyze statistics of accidents and violations of various age and gender groups. Regardless of how safely you drive, those in your age group determine the rates you pay. Their accidents and violations increase your premiums.
- · Make and Model of Your Car
Frequently stolen cars add significantly to your premiums. More expensive cars that require costly repairs mean a higher premium.
- · Driving Record
All accidents and traffic violations will add to your cost of insurance. Any DUI may cost more than an increase in insurance premiums. It may cost you your driver’s license
Average Cost by State
Insurance rates vary according to your geographical area. According to PRweb.com, Louisiana has the highest insurance rates, and Maine has the lowest. PRWeb.com quotes a AAA study showing that car insurance premium rates have risen by 3.4 percent. You may access the study from PRWeb website. You may also see where your state ranks in insurance premiums.
Ways to Decrease Insurance Premiums
Some things are impossible to change that will lower your insurance premiums. You cannot change your age or gender. However, there are some things that you can change that will decrease your premium. You can find many helpful tips at 21st Century Car Insurance.com
- · Education
You may be able to reduce your premiums if you go to back to school. According to Education Levels and Car Insurance Rates people who have more education are also given breaks on car insurance.
- · Marital Status
Statistics show that women re safer drivers than men, and married men are safer drivers than single men. When a man marries, insurance rates drop.
- · Discounts
Many insurance companies offer various discounts. Don’t be afraid to ask for them. If you qualify for any discount, you should get it.
Kinds of Insurance
Before purchasing insurance, you should know the types of coverage you need. Have your agent explain the details of your policy. In the meantime, Kiplinger.com makes the types of insurance easy to understand. You can learn more fairly easily by looking up 21st century car insurance or another reputable auto insurance broker.