When you first pass your driving test, the advice offered by elders and guardians is often the same. It promotes safe and responsible driving, on the understanding that this will not only protect fellow motorists on the road but also lead to reduced maintenance and insurance costs. The notion that drivers with unblemished records are able to access the lowest insurance premiums is not entirely accurate, however, with statistics in the U.S. suggesting that other factors have far more bearing on the cost of insuring a vehicle.
The Key Factors in Minimizing Car Insurance Premiums
According to research conducted by the Consumer Federation of America (CFA) in Washington, D.C., more than 60% of insurance quotes were higher for drivers with clean records than for those who had accumulated points. In addition to this, the rates offered to accident free drivers were 25% higher on average, which represents a sizable difference and suggests that there are more influential determining factors.
Consider the following:
Your Geographical Location – One of the most important factors in determining car insurance premiums is an applicants geographical location. It is a little known fact that insurance firms monitor motoring trends in each and every city, paying particular attention to accident rates, thefts and subsequent lawsuits. If you live in an area where the corresponding numbers are inflated, then you may end up paying more for car insurance than reckless drivers who live elsewhere.
Your Age – Although it is widely publicised that age is an influential factor in determining insurance premiums, many motorists do not understand exactly how their date of birth effects the amount that they pay. Once you get beyond the age of 24, for example, the annual premiums that you pay are likely to fall, although these do not reach their lowest rate until you turn 40.
Your Educational Background and Career – It seems something of an anomaly that your educational background and career choice should influence the amount that you pay in car insurance, but these are increasingly important factors for providers. We live in an age where digital information is readily accessible, and insurers are beginning to tap this vast resource in order to determine their rates. While this is a controversial approach that has been disputed, it is important as a motorist that you understand how your claim is processed and ultimately implemented.