6 Factors that may affect your Auto Insurance Premium

When it comes to auto insurance, many consumers have no idea what insurers look to propose the amount of the bonus all powerful. But believe it or not, the insurers pull your car insurance from thin air.

To help you get the lowest possible insurance rates, it is important to understand the factors that might affect your premium - and how to use these factors to the scale in your favour!

Factor # 1: Your driving record

There is probably no surprise to you that insurers watch your driving record. They do this to measure or assess the risk to you. But what exactly they are looking for? Insurers will analyze your folder of conduct for violations of traffic and claims, liability, accidents usually three to five years. If you have received marks against your driving record, you can bet that you will pay more for your car insurance.

Tidings: Marks against your driving record fall usually later in the eyes of your insurer after three years. You can avoid to be penalized for a less stellar driving record in defensive driving as possible and avoid filing small claims (such as hail) and pay for the repairs yourself.

Factor # 2: Previous insurance

If you are applying for car insurance under a new insurer, your prospective agent will almost certainly consider your previous insurance. He or she wants to know if that you pay your premium on time, claims how increase you from your former insurer, as well as any other problematic behavior your risk for.

Red flags in the previous insurance will probably lead to an increase in the rate of insurance. And unfortunately, if you were not insured previously, you can pay more auto insurance until you establish a history for insurance.

Tidings: You can avoid in the future, these penalties by paying your premiums on time, avoiding small claims filing and maintaining a respectful relationship with your insurers.

Factor # 3: Your credit history

According to a recent study by the firm of insurance Conning research company, 92% of top insurers 100 nation are factoring in automobile insurance credit history.

And while the insurers are looking directly at credit notes, they are more interested in how you have used your credit in the past. Insurers will focus on the length of your credit history the amount of revolving debt you have and all collections or payments overdue to form an insurance score.

And while critics and consumers accuse insurers to use based on credit rating as an excuse to inflate the car, there is a surprising amount of statistics for the use of the rating of insurance. In fact, studies have shown that consumers at the bottom pool of credit file claims 40 percent more than consumers with good credit. Insurers is also use your credit history to assess the likelihood of paying your premiums on time. It is for these and other reasons that rating insurance is probably here to stay.

Tidings: You can improve your score insurance paying your bills on time, paying down existing high balances (such as credit card) and have your premium car automatically withdrawn from your account each month.

Bonus tip: insurers tend to give rebates to customers whose balance automatic invoice!

Factor # 4: Geographical location

Can insurers charge you more because there where you live?

Yes.

Statistically speaking metropolitan areas see more incidents of car accidents, theft and vandalism. These factors increase the risk that an insurer takes to cover you. For example, if you live in the city, you pay more for car insurance if you lived in a more rural area or the suburbs.

Tidings: While your premiums may be traced in urban areas, you can mark the rebate if your car is preserved in a parking garage or a parking structure. Make sure that your agent know these safety - measures including any electronic theft deterrent in your car.

Factor # 5: Car question

This is a surprise to most new car costs often more to ensure that a which has been around the block a few times.

How is this possible?

With air bags and anti-theft devices in the car, you might think that your premium would be down. But the fact is that newer cars can be more expensive repair and replace - which will increase the amount you pay for the car.

Tidings: Don't discount discount! If your car has multiple airbags and other safety features, make sure that your agent is aware of all. And you can avoid premium surprises in the future by getting an estimate of your insurance before purchasing this luxury coupe.

Factor # 6: Using the car

Believe it or not, your insurer concerned with how you use your car and those that you use for. This may seem relatively little important to an insurer, more you are on the road already your chances to enter an accident - which translates into an increase in risk to the insurer.

Tidings: Well, it isn't you can do about it. Living near work should save a couple bucks, but if this is not an option (and sometimes it is not), make up for any increase of ask you additional bonus incentives offered and discounts. Chances are good that your insurer Pearl your premium up to a large part in this way.

An educated consumer is a powerful consumer!

While the final decision on automobile insurance premiums is ultimately in the hands of the insurer, by using the above advice can help tip the balance in favour of the consumer.

So to get cheaper car insurance premiums by educating yourself on the factors mentioned above. And remember, different insurers may use these factors in different ways - so shop and get multiple quotes to find the good market auto insurance you need!

On InsureMe

Megan l. Mahan is a writer and expert information on insurance with InsureMe in Englewood, Colorado. InsureMe links agents throughout the country with consumers, buying insurance. Specializing in health, home, life and auto insurance quotes, InsureMe network provides thousands of agents with insurance leads each year. For more information, visit InsureMe.com.