Before you purchase a car, it’s a good idea to understand all of the factors that go into determining your auto insurance rates.
Before purchasing a car, it’s a good idea to understand all the costs associated with the purchase. This includes the cost of auto insurance. Auto insurance rates vary based on a variety of factors, which we’ve highlighted below. Learning about how auto insurance rates are determined will help you navigate why rates vary and can assist you with your auto buying decision.
Both size and performance impact premium costs:
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.
Typically, the cost is based on the average amount of miles the automobile is driven: the higher the mileage, the higher the premium.
Where you live or store your vehicle has a major impact on what your automobile insurance will cost. Typically, the more densely populated an area is, the higher the auto premium. More cars on the road means a greater risk of accidents.
One of the most important factors in determining auto premiums is the driver’s age. 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 under the age of 25.
Studies indicate that drivers with past claims are more likely to have future claims, so the driving records of the individuals listed on the policy greatly impacts the cost of the policy. 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 insuring the same vehicle but are “loss-free.”
The higher your deductible, the lower your premium.
You can earn premium discounts based on the vehicle’s safety features, such as anti-lock brakes, air bags, anti-theft devices and having more than one car on the policy.
What to do before purchasing a vehicle? Test drive the auto insurance rates by contacting us at (219) 879-4581. We would be happy to provide you all the information that you need to help you make your best buying and coverage decision.
A graduate of Butler University in 2010, Scott moved to Northwest Indiana when his wife had the opportunity to return to the family farm in Westville. Scott specializes in assisting businesses to better understand and address their cyber risk profile. In his free time Scott loves sports, cats, board games, and exploring the world with his wife.