Every state requires its motorists to be insured to drive legally. Before you get behind the wheel of your vehicle, you need to make sure that you have the minimum legal amount of insurance on it.
As you shop for new auto insurance, however, you may wonder what goes into determining how much you will pay for it. These factors are some that insurers use to figure out the amount of your monthly premium.
Your Age
Your age will be one of the primary factors used to determine the amount of your premium. As a general rule, insurers charge higher premiums for drivers who are under the age of 25, as well as over the age of 65.
Higher premiums for people in this age category are often standard because these drivers pose more of a hazard on the road. Younger and older drivers statistically have slower reflexes and take more risks while driving. They pose more of a risk to the insurer and are more likely to need claims to be paid out.
With that, you can anticipate the amount of your premium based partly on how old that you are. If you are between the ages of 25 and 65, you can expect to pay less for your insurance.
Type of Car
Another factor that is used to determine the amount of your premium is the type of car that you drive. If you drive a newer vehicle, especially a sports car or four-wheel drive pickup, you can anticipate paying higher premiums. These types of cars have higher appraisal values and are more at risk of being stolen or vandalized.
However, if you want to pay lower premiums, you can buy a four-door sedan or an older vehicle. Older vehicles and commuter cars typically are less of a risk to insure. They do not have as high of appraisal values and do not require as much insurance to protect.
The State
Finally, the state that you live in will also factor into your premium amount. If you live in a heavily populated state like California, your premiums may be higher because you will encounter more traffic. States like Kansas with less traffic often do not require as much insurance to protect your vehicle.
These factors go into figuring out your car insurance premium. Your amount will be based on your age, your type of car, and where you live.