Factors That Affect Insurance Premiums

Certain characteristics will cause you to be included in a group of drivers who present a greater risk than the average driver. Each such group is compiled based on how many claims were filed by individuals in that group. Insurance companies determine the rate based on the cost of those claims. There are things you can do to affect the group that you are placed in.

Make certain you maintain a spotless record. Those who have multiple accidents and tickets for moving violations will most often pay a much higher premium than drivers with clean records. If a driver is at fault in more than one accident in fewer than three years, or is convicted as the result of a DUI, the insurance company will usually raise the cost of the premiums significantly. They may also refuse to renew an insurance policy when it comes time for renewal. The policy can be immediately cancelled if you lose your driving privileges through suspension or revocation. Your poor driving record will do more damage if you are covered under your parents' automobile insurance. It will have a detrimental effect on their insurance and they may pay higher premiums as a result.
The type of car you drive will affect your premiums also. Some automobiles are more prone to damage in an accident. Some cost more for repairs, a luxury vehicle for example. Some are likely to be stolen more frequently than others. If you drive a high performance sports car, insurance rates will rise. If your car is deliberately "modified" to be a street machine, insurance may skyrocket.
Buy a car that has all the safety features. This includes vehicles with seatbelts that have the automatic release feature, anti-lock brakes and side as well as front airbags may lower the premium.
Your credit rating matters because you present yourself as a responsible, stable individual by paying bills on time. Premiums may go up for someone with a bad credit history.
Maintain a good grade point average if you are a student. Insurance companies may offer a discount to those who have a "B" average or higher.

These factors are just a few things you should keep in mind in order to save more on car insurance. Always avoid being categorized as a high risk driver. One single ticket or accident can increase your insurance cost for 3 to 5 years depending on who writes your policy. If you do get into an accident you should always consider shopping around since some companies are more lenient than others.

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