When you decide to buy a car insurance, one thing you must check is premium. Many factors can influence the insurance rate thus affect your premium, the money you have to pay every month. Pay attention, there might be things you’ve never noticed before.

Deductible

This is the amount of money that you pay out of your own pocket if you get in an accident. The higher your deductible, the lower your insurance bill. In general, a deductible of at least $500 is worth considering, as damage to your vehicle that comes in at less than $500 can often be paid without filing an insurance claim.

Age

Younger, less experienced drivers have higher insurance rates.

Gender

Men have higher rates than women.

Demographics

Though actual risk is determined by the zip code you live in, city residents statistically have more accidents, which drives their premiums higher than those who live in rural areas. Additionally, more people living in an area means more claims, which is reflected in the higher premium prices in such places. If you’ve recently taken up residence in New Mexico, Alabama, Oklahoma or Florida, expect to pay higher premiums. According to the Insurance Research Council, these states have the greatest concentrations of uninsured motorists, which ultimately seeps into insured drivers’ premiums.

Claims

Accident-prone drivers pay more. If you want to keep your rates low, keep the number of claims that you file to a minimum.

Moving Violations

Speeding and other moving violations all have a negative impact on your insurance bill. Obey the law to help keep your rates from rising.

Vehicle Choice

Sports cars cost more to insure than sedans, and expensive cars cost more to insure than cheap ones do. Looking into the cost of insurance before you purchase that new car could help you save a bundle on your car insurance.

Driving Habits

The number of miles that you drive, whether or not you use your car for work, and the distance between your home and work all play a role in determining your rates.

Theft Deterrent Systems

If you have an alarm on your car, you’ll pay less to insure your vehicle.

Safety Devices

Airbags and anti-lock brakes both work in your favor by keeping you safer and lowering your insurance bill.

Accident Prevention Training

Some companies offer discounts if you take a driver’s education training course.

Multiple Policies

If you have more than one car and/or also have homeowner or renter’s insurance, keep in mind that many insurance companies offer discounts based on the number of policies that you have with them.

Payment Plan

Some insurance companies offer discounts based on your payment plan. Paying your entire yearly bill at one time, instead of in installments, may lead to a discount.

Credit Score

Good credit lowers your car insurance rates. Bad credit increases them.

Not having auto insurance

If you ditched your auto insurance in an effort to save some money, you’ve committed a classic case of being “penny smart and pound foolish.” Not having any auto insurance, even for just over 30 days, will cause your premiums to jump.

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