If you own a vehicle, possessing a vehicle insurance policy is an absolute necessity. If you have always been curious about why you pay what you do for vehicle insurance and how much your premiums are, here are a few of the key factors that can affect your policy:
- Your driving record— In general, drivers with accidents and traffic violations on their record have to pay more for vehicle insurance than those with clean driving records. Although you can’t re-write your driving record, remain vigilant about driving with care, and eventually your insurance premiums will reflect this.
- The car you drive— If your vehicle has poor safety ratings, you will likely pay more for insurance than someone who drives a car that received excellent ratings. If you have plans to purchase a new vehicle, pay attention to how susceptible the vehicle is to damage and the rates of occupant injury before making a final purchase.
- How far and how often you drive— Regardless of how safe of a driver you are, the more miles you drive in one year, the more likely it is that you will get into an accident. Therefore, people who use their vehicle for commuting and for business are more likely to pay higher vehicle insurance premiums than those who simply use their car for leisure.
- Where you live– In many cases, drivers who live in more urban environments where theft rates are higher pay more for car insurance than those who live in a rural setting.