Are You Paying Too Much in Car Insurance Premiums?

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There are a great many factors that come into play when insurers sit down and decide rates.  They need to look at the type of car you drive, your credit rating, and your driving record, among other things.  All these factors are taken into account when determining your risk to the insurance company.

However, there are certain other factors that are just as important, and can greatly affect the amount you pay in premiums.  If you’re applying for insurance online, you will want to answer questions relating to these factors as accurately as possible to ensure you don’t end up paying more than you should.

Factors to Pay Attention To When Getting Insurance Quotes

The following are some of the factors which you might not have thought about as far as paying premiums goes.  However, these are important to insurance companies and can often influence the amount you pay each month.

  1. Mileage

The mileage of the car you want to insure will affect the premiums you have to pay, but so will your own mileage as a driver.  Insurance companies feel that the more time you spend on the road as a driver, the greater your risk of being involved in an accident.  Thus, if you don’t cover a great deal of distance in a given month, you might be eligible to pay lower premiums.

Some insurance companies have certain brackets relating to mileage, where certain drivers of similar mileage will fall into the same price bracket.  Others decide to keep it more specific and insure a driver based on the exact number of kilometres he or she covers over the month – a form of pay-as-you-drive.

  1. Experience

Again, insurance companies calculate premiums based on the risk-level of a given driver.  Lesser experienced drivers are seen as a greater risk than more experienced drivers, which is why premiums are often higher for young people.  The amount of experience a driver has is based on the number of years he or she has been licenced to drive, and possibly how many accidents he or she has been involved in.

  1. Driver Status

If there is to be more than one driver driving a specific car, the insurance company will likely want to know who is to be the car’s primary driver.  In this case, the premiums will be affected by who is identified as the primary driver.  More experienced drivers will likely garner lower premiums, and vice versa.

There are many factors consider outside of these three examples.  The key takeaway should be that there is a great deal that you can do to ensure that you aren’t paying more in premiums than you should be.  So, if you’re looking for car insurance, do your research and be sure to maintain accuracy in your answers as best you can.

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