Factors that Impact Auto Insurance Premiums

Auto insurance is a part of life for millions of Americans, but unfortunately a large part of it remains a mystery to drivers. There is no set formula available for consumers to figure out how much it will cost to insure their next vehicles. In fact, getting an instant car insurance quote online remains the best way to verify your insurance premiums are accurate. There are literally dozens of factors that can impact the cost of auto insurance, from your age to your marital status and even your credit rating. Here are just a few of the factors that go into calculating your auto insurance premium:

• Your driving record: It comes as no surprise to any driver with a history of speeding tickets that a person's driving record has a direct impact on auto insurance premiums. Driving the speed limit and obeying local laws will aid in keeping premiums down.
• Your age: Teen drivers are the most expensive segment of the population to insure because they're the most dangerous on the road - and thus, are the biggest insurance risks. Conversely, drivers between the ages of 50 and 65 have the statistically lowest premiums because they are considered the safest drivers.
• Your sex: According to statistical data analyzed by insurance companies, men tend to have lead feet - they drive much more hazardously than women. Statistically. That's why women cost less to insure.
• Your marital status: If you're married, chances are good that you're not out driving late at night when it's most dangerous on the road. As a result, you will cost less to insure than a single person who cruises night clubs every Friday night.
• Your address: There are good ZIP codes and bad ZIP codes, both for property value and insurance. For decades, insurance companies have analyzed data on accidents and dangerous roadways. If you live in an area that has been flagged a high-risk for accidents, you're going to pay more for insurance.
• Your car: If you drive a car that's loaded with safety features and a security system - and one that has an excellent crash-test rating - it will cost you less to insure than a vehicle that is deemed unsafe. Remember that you can get an insurance quote before you buy a vehicle. So if you're comparison-shopping, it might be wise to compare two or three models to figure out which one is the most affordable overall.
• Your credit: Your credit rating follows you everywhere. Everywhere. Not only will it affect the types of loans you receive and the interest rates of your credit cards, it also can impact your auto insurance costs. Drivers who have high credit scores are considered low-risk for loans. Similarly, insurance companies think these people also are low risks for accidents or other claims.
• Your job: Do you spend most of your day in a car, visiting clients and going out on calls? Or is your day spent at a desk? The type of job you have will affect your insurance rates. Drivers who are in their cars all day will tend to cost more than those drivers who work in a cubicle and only drive to and from the office.