Car Insurance Premiums Explained
You’ve tried all the tricks and tips in the book and yet your car insurance premium is still higher than that of your neighbor’s. Before you cry “Unfair!”, here’s some of the ways premiums are calculated. Many factors can affect your premium, and insurance companies employ a statistically based risk for a specific population. In most cases, the higher the risk associated with a person, the higher his or her premium is likely to be. Some of these risks are:
Gender – statistically, women drivers are safer drivers than men, although that trend is beginning to change as more female drivers take the road.
Age – drivers under the age of 25 are at greater risk of being in an accident, and teen drivers have the worst risk statistic. Drivers between the ages of 50 and 65 generally have the safest records, but the older you get, the higher the risk for accidents are.
Purpose for using the vehicle – the more you use your car, and the longer the distance you use it, the higher the risk. Insurance companies will look on whether your car will be used for going to work, used for work, or for leisure only.