5 Essential Factors Before You Decide On Your Car Insurance Premium

Car insurance is probably the most common type of insurance policy taken by people around the world. However, the premium for car insurance can vary significantly for person to person depending upon various factors. It is therefore essential that we understand these factors if we want to keep our insurance premiums to the lowest possible amount. Consulting with a good auto insurance company in Vancouver is also a great idea to get a better understanding of insurance rates.

1.The make and model of the car. Insurance rates will vary greatly depending upon the make and model of the car you are using. This includes the cost of repair of the car, cost of its associated parts, its safety history, whether it’s a first or second-owner driven vehicle, year of manufacture etc. A very expensive car will naturally have expensive parts and will cost a lot more to have repaired, than a small budget car with cheap and easy-to-replace parts.

2.How good a driver you are. Your driving history or record will matter immensely. If you’ve been a careful driver and observed traffic regulations, and have no major traffic offenses, then you are less likely to be someone who will be filing for returns anytime soon. How many miles you’ve driven will also make a difference because a car that has been driven around a lot will be more likely to be in the need for repair and maintenance.

3.What you would like to cover in your plan. Depending upon the number of items you include in your insurance cover, the cost will consequently vary. If you’ve got a pretty comprehensive coverage plan ranging various types of situations, the premium will vary than if you’ve got a basic plan with limited coverage.

4.Other vital information about you. This includes your place of residence , your age and driving experience, and your occupation. Depending upon the kind of neighbourhood you live in, the rate will vary because if you live in an area where theft and burglary is prevalent, you’ll likely be filing claims faster. Also if the repair prices in that area are higher than in other areas, you’ll need money from your insurance plan sooner. Age is another important criteria- if you’ve been driving for many years and are in your mid-40s, it’s understood that you are less likely to cause accidents than if you are an 18 year old college kid or a 75+ retiree with poor eyesight. Your job matters because it affects the amount of travel you need to do to work or for work-related purposes. The more you travel, the more the wear and tear, and the more frequent the repair costs involved.

5.Your credit history. Some companies also use this data. If you generally have a good credit history, its deemed that you are less likely to file claims, and your insurance premiums may stay on lower than if you have a disreputable credit history.

Trying to keep your insurance premium low isn’t something you can always control. But there are various ways you can try to keep it to the minimum possible level. The best way to get advice on how to do this is to consult a professional auto insurance agency in Vancouver.