By Dr. Kavita
Car insurance companies use a lot of factors to find out how much of insurance premiums should be collected from customers. The best part about these factors is that most of them can be modified and controlled by the consumers themselves, so basically it is like being able to control how much premiums you should be paying on your car insurance.
Extent of cover and deductible amount
You must be already aware that you will have to pay more towards premiums if you opt for a lower deductible amount on your car insurance and vice versa. Also there are options available for you to decide if you want to add extra coverage or not, that may not be deemed compulsory by you State laws.
Your car model and brand
It is common knowledge that not all cars are created equal. Some models are better than others and some brands have more value and credibility when compared to other brands in the market. All these factors can decide the premium amount of your car insurance as well.
So if your car insurance company thinks that the model and brand of the car that you drive is eligible for a discount because of its comparatively lesser risk of getting involved in damages, injury to the occupants and so on, then you will be charged lesser. But on the other hand, if your brand is devalued by the insurance company because of its sketchy history of being more susceptible to damage and occupant injury, then you will have to pay more to offset the high risk
Miles used by your car
This is another common sense factor that everyone can relate to. The more distance that your car has run, more are the chance of developing repairs and damage in the near future. The insurance company has to foresee this risk and expenses that are possibly coming up for claim and that is why they will decide to charge you more for your premiums.
We may not want to accept this fact openly, but not all localities and neighborhoods are the same when it comes to safety. Some areas and neighborhoods are notorious for thefts and acts of vandalism by the local goons, while other areas are comparatively peaceful and safer.
If your choice of a home address has been wrong, then you will have to pay more to compensate for this mistake of yours.
Your driving record
If you are considered to be a risky driver who has caused more than a few accidents during your driving history, then you will be charged more for your car insurance premiums. If you have managed to drive safely without bringing even a single blemish on your history, then you can confidently look forward to discounted and lesser premium rates on your car insurance. So it definitely pays to drive safely!