Before you purchase a car, it’s a good idea to understand all the costs associated with the purchase of the vehicle — including the cost of auto insurance.
Learning about how automobile insurance rates are determined will help you to navigate why rates vary and assist you with your buying decision. Factors that impact auto rates include:
Age of Insured Driver(s)
Young drivers under the age of 25 are statistically up to four times more likely to be in an accident, so rates are typically higher than their older counterparts. Additionally, males under the age of 25 will be more expensive to insure than females of that age.
Studies indicate that drivers with past claims are more likely to have future claims. Drivers with moving violations, accidents and/or claims in the past three years will usually pay a higher price for their automobile insurance than those ensuring the same vehicle but are “loss-free.”
Type of Vehicle You Drive
Both size and performance impact premium costs.
- Size: Larger cars tend to be less expensive to insure than smaller cars because they typically suffer less damage in an accident.
- Performance: High-performance vehicles, such as sports cars, tend to be more expensive to insure since they are statistically driven more aggressively. As a result, they tend to be involved in accidents more frequently.
Value and Age of Car
As a simple rule of thumb, the more expensive the car, the more it will cost to insure. The newer the vehicle, the more it costs to insure.
You can earn premium discounts based on the vehicle’s safety features, such as anti-lock brakes, airbags, anti-theft devices and having more than one car on the policy.
The higher your deductible, the lower your premium.
Top Ways to Save on Your Auto Premium
- Consider raising your deductible.
- Keep up your good driving record.
- Drive a car with safety features such as anti-lock brakes and airbags.
- Install an anti-theft device.
We’re Here to Help
Call our office today at 780.435.2400 to learn more about all of our automobile insurance and personal risk management solutions.