Insurance Premiums on your Automobile Insurance are something that everyone should consider. When you select your insurance and sign a contract between you and the insurance company, you have agreed to pay for your policy which outlines your insurance protection. Depending upon the type of coverage and the Insurance Agent that you have selected, your premiums will vary. It is wise to shop for your insurance coverage or to use an Insurance Broker that will find the premiums that give you the best coverage and cost you the least. There are many factors that help to play a difference in the price of your insurance premiums that you will pay on a regular basis.
Most Insurance Companies will allow you to pay your premiums on a monthly basis, quarterly, or every 6 months. Most people do not realize that with the monthly payments come the highest fees. Every month when your payment is made there are fees added to your monthly payment. When you select to pay it quarterly, there is a one-time fee and it is not as steep as the monthly fees. When you pay your premium every 6 months that fee is not charged or if it is, it is substantially less. If you take your 6-month payment and divide it by 6 and subtract that from your actual monthly payment you can see how much you could actually be saving on your car insurance that you have already selected. It is not surprising to see that you could actually save $135.00 in a 6-month time frame.
Other important factors that many Insurance Companies use to select your payments on your insurance premiums, is that they will do a credit check on you and your insurance premium is partially based on your credit history. The Department of Motor Vehicle reports your driving record and that also plays a very significant role in the price that you pay for your automobile insurance. If you have multiple accidents and tickets, you are going to pay a higher insurance premium than someone who does not have tickets or prior accidents on their records. In some cases, someone with multiple tickets and accidents will have to take out a high-risk insurance, and those premiums will be much higher.
Another factor will depend upon the county and the state that you live in. There are counties in your state that have more accidents and traffic so the insurance premiums in that county will normally be higher than those in a county that has less traffic and accidents. This increased premium will vary from Insurance Companies and is another factor of why you need to price shop when selecting your vehicle insurance.
Your age has another big bearing on how much you will be charged for your premiums and what you will pay on for your overall policy. If you have ever added a 16-year-old to your policy and watched your cost go up, that is exactly what happens. Most rates on automobile coverages will drop when a driver turns 21 and then again will drop when a driver turns 25. The rates are normally higher on a male driver than on a female driver. The industry knows that more male drivers have the highest rates of tickets and accidents over female drivers and has to charge accordingly.
When selecting your Automobile insurance, there are many things to consider and do not be afraid to ask questions. Asking questions and getting more than one quote will help you to make an educated decision on purchasing the Insurance that is right for you and your family and will help you to have a premium that you can afford in your budget.