What Goes Into The Calculation Of Your Car Insurance Premium?

As the cost of living goes up, people are looking for ways to save money. This leads them to scrutinize their car insurance so they can see if they are paying too much. Quite often, they see numbers that they don’t like and wonder why they are paying so much. If your premiums keep going up then you likely want to know why. 

Car insurance is a murky subject without too many clear answers. However, there are several factors that go into how the calculation is made for your insurance premium every month. If you decide to shop for car insurance from another provider, it is helpful to understand how they arrive at the number. In this article, we will go over the factors that go into your car insurance costs. 

Your driving habits

If you are not the best driver out there and get speeding tickets on occasion or have been in a few accidents then your insurance company sees you as a risk. The way that you drive has a big impact on what you are paying every month. The worse that you drive, the higher your premium. Even the cheapest car insurance West Virginia has will still be high compared to what it could be. 

It makes sense on many different levels to not drive aggressively but in terms of your insurance, it is vital to avoid it to pay less for your premium. Learn how to drive better and you will see your rates going down. 

You can even request a tracking device from your insurance company that will show them how you drive. It is sort of like a black box from a plane but for your car. If you don’t speed or brake with too much force often then this will help you lower your premiums much faster if you weren’t a great driver in the past. 

Where you live

Another major factor that goes into your car insurance costs is one that you have very little control over, unfortunately. Where you live is something that will affect your rates since it plays a part in your driving and can contribute to a higher premium.

One of the factors is the amount of traffic that your area has. If it is a high-traffic area then you are more likely to get into an accident. This makes the risk of insuring you higher and leads to a higher premium. 

Another factor is if there is a high amount of car theft near where you live. Your insurance company may feel that you will have to file a claim for your car being stolen or even just broken into with items stolen. 

Your age

If you are a very young new driver then you are seen as a risk. Or, if you are over the age of 65 then you are also seen as an accident risk. This causes your insurance to go up even if you are a good driver. 

Unfortunately, there is no way to change your age to lower your premiums. You’ll have to find other ways to save.