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When insurance companies determine what premium you will pay for car insurance, they take into consideration a variety of factors, including some things like the type of car you drive, how far you drive and what area you live in. Also taken into consideration are personal attributes the insurance company can glean from the information you provide, as well as your records. This information includes your driving record, as recorded by your state's Department of Motor Vehicles (DMV), your age, any driver education classes you have taken, and the anti-theft and safety equipment in your car. By being cautious, you can lower your insurance premium.
Your DMV record. Whenever you receive a ticket for anything, it appears on your driving record. This includes traffic violations as well as accidents. Insurance agents called underwriters have permission (granted by you when you signed up for a policy or a quote) to look into your driving record to see if you exhibit any behaviors that make you more likely to file a claim for an accident. Points against your license and traffic violations can cause you to look like an irresponsible driver. It is also important to note that when you file a claim, the insurance company will look at that record as well.
Your age. Your age has quite a bit to do with your car insurance premium. Teenagers and less experienced drivers are likely to have higher rates, even if they have not been in an accident. Males, who statistically have more accidents, are also charged more. However, as more women drive, this is likely to change. Most policies give a reduction at 21 years of age, or with 5 years experience. A further reduction can be expected at around 24 or 25. Married men, however, also receive a reduction. The reasoning is that married men think more about their responsibility to their families.
Driver education courses. When you take a driver education course, or a defensive driving class, make sure that you save the certificate of completion and send a copy to your insurance company. You can usually receive a discount for learning to be a safe driver. These classes can also help you expunge minor traffic violations from your DMV record. College and high school students can also receive premium discounts for keeping a high GPA. Better grades, in car insurance terms, mean a more responsible person.
Equipment in your car. The equipment that comes in your car, or that you put in your car, can also have an impact on car insurance premiums. If your car has an alarm, or other anti-theft devices, you receive a lower rate. Additionally, safety features that can lessen injury-related costs, like front and side airbags and a service like OnStar, can result in a lower car insurance premium.
There are things you can do to make yourself more attractive to insurance companies. By driving carefully and keeping your DMV record as clean as possible, you can keep your premiums low. Additionally, proving that you are responsible by taking driver education courses every five or six years and making sure your car has adequate safety and anti-theft measures, you can lower your insurance premiums. You, of course, cannot control your age. You can, however, show that you are a safe and responsible driver at any age.