Five Important Factors Analyzed by Car Insurance Companies That Can Make Premiums Expensive
Drivers who own a car have numerous responsibilities. Besides carefully driving the vehicle to avoid any potential collision, drivers are also responsible to purchase car insurance. The price of car insurance is determined after the car insurance company has analyzed multiple factors. Some of the factors have a greater impact than others on the final price of an insurance policy.
The following factors can make car insurance expensive:
- The type of car. Drivers who own expensive limousines, SUVs, muscle cars, or hypercars should not be surprised if they are paying more on their insurance premiums. Expensive cars are expensive to repair. Also, newer vehicles are more expensive to insure. Policyholders who want to save money on car insurance should get insurance for family cars that have high safety ratings.
- The age of the vehicle. Even if they are not luxurious models, newer vehicles are more expensive to insure. New vehicles are manufactured with better materials and have the latest auto technology. For these reasons, newer vehicles cost more to insure. Drivers who want to get insurance for a particular type of vehicle should try to purchase an older model in order to save money.
- Driving record. The driving record of a policyholder is the most important factor analyzed by insurers. Drivers who have multiple traffic tickets, at-fault accidents, or DUI incidents in their driving records will pay more on car insurance. In some cases, the insurers can cancel the policies of drivers who got involved in accidents or DUI incidents.
- Workplace. Insurance companies will be interested if a policyholder is using his vehicle to commute to work and how far is the workplace from home. Policyholders who are working in a place that is far from home will be charged more on car insurance. Insurers consider that drivers who spend more time on the roads are more likely to be involved in car accidents.
- The policy itself. Policyholders who apply for high coverage limits, additional options, and extra coverage will pay higher insurance premiums. Drivers can customize an insurance policy how they want in order to have the coverage they need and they can afford.
For additional info, money-saving tips and free car insurance quotes, visit http://compare-autoinsurance.org
Compare-autoinsurance.org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand name insurance companies, etc.
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