By law, you must maintain an active auto insurance plan on your vehicle before you can legally drive. However, before you buy a policy, you may want to know first how much it will cost you. You also want to know what, if anything, that you can do to lower the policy's cost.
As you shop for an auto insurance plan, you can take into consideration what factors go into designing and pricing it. These criteria are some that insurers use when creating policies for auto insurance for drivers today.
Age
One of the main criteria used to design auto insurance policies is the age of the driver. As a rule, you can typically expect to pay more for your auto insurance plan if you are a young driver, particularly one who is under the age of 25. Likewise, the insurer may charge you more if you are 65 years of age or older.
Insurance companies generally view people in these age demographics to be more of a safety liability. Young drivers, as well as senior citizen drivers, typically have slower reflex times and take more risks while driving. They are statistically more likely to be in an accident that can cost the insurer significant money.
Vehicle Make and Model
Another factor that goes into designing your auto insurance plan is the make and model of your car. In general, newer and sportier model cars cost more to insure than older make and model cars. Likewise, a large pickup truck can cost more to cover with auto insurance than a four-door sedan.
When you want to pay the least amount of money for your auto insurance plan as possible, it can help you to buy a pre-owned family or commuter car. If you buy a four-wheel-drive pickup truck or a sports car like a Camaro or Mustang, you can expect to pay more for your auto insurance plan.
Driving Record
Finally, your prior driving record will come into play when the insurer designs your auto insurance plan. If you have numerous wrecks or tickets on your record, you will pay more for your coverage. Your premium price will remain high until these infractions fall off your record and you demonstrate safer driving behaviors.
These factors go into creating and pricing your auto insurance plan. Your insurer will consider your age, car make and model, and record. For more information about auto insurance, contact a local insurance provider.