Tuesday, 12 July 2016

Factors Considered for Fixing Auto Insurance Premiums

While general auto insurance coverage standards may be the same for most places, usually premiums differ from insurer to the other. When it comes to determining your premium rate, these are some of the things insurers look out for.

Driving Record

Your driving sins can come back to haunt you when looking to buy an auto insurance policy. Your driving record would tell the level of risk you are to the insurer. If the records are not too impressive - meaning you've been involved in multiple accidents - expect a higher premium.

Where You Park at Night

This may seem a bit weird but it does play an important role in fixing your premium. If the parking area is not too safe, you should expect a higher premium. This is because the risk of it getting burgled is quite high.

Type of Car

This too plays a role in determining premiums. The more expensive a car is, the higher the premium. This is because it would cost more to repair or replace an expensive car than it would in repairing a less expensive one.


It is generally believed that older people drive more carefully than their younger counterparts. Although this isn't the first of things to consider, it can play a role when driving records are taken into account.

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