Whether, you’re buying a new vehicle, adding a new driver to your policy or shopping around for the best rate, it helps to know what may be factored into your premium. Here are seven, perhaps surprising, things that can raise car insurance rates.
Where you live and where you park
Not only where you live, but also where you park are common things that can be factored into the cost of insuring you and your vehicle. Location demographics — crime, theft and vandalism rates, population densities and weather patterns — can have a direct impact on determining your rate. We’re not saying you have to move just to save a little on car insurance, but being aware of these factors can help you understand your cost of insurance.
What you drive
When it comes to purchasing a new ride, there are hundreds of makes and models to choose from. You’ve probably given a lot of thought to the make and model, year, price tag, features, etc., but did you know the type of vehicle you purchase can impact your premium?
- Make/model: A sports car may sound exciting, but sportier cars — especially those known for their speed — often carry higher insurance rates. SUVs, too, may seem appealing because of their larger size, but premiums are often higher because of the damage the large-sized vehicles can cause.
- Engine size: Vehicles with bigger engines may drive up your premium because of the horsepower. On average, a six- or eight-cylinder vehicle has a higher premium than a four-cylinder model.
- Theft rating: Insurance companies monitor vehicle theft rates. If your make or model has a higher chance of being stolen, your premium may be higher.
How much you drive
One of the basic questions you’ll be asked when you apply for an auto policy is how many miles on average you drive. This is because, statistically speaking, the more miles you’re on the road, the higher average chance you have of being in a car accident.
Your driving record
Your driving record can impact your auto insurance premium. If you have a good driving record you may pay less, but your driving record can also increase your premium. For example, speeding tickets can increase the amount you pay.
Purpose of your vehicle
When you use your vehicle for business, you are likely on the road more often than average, or longer than average. This can put you at a greater risk for an accident and increase your premiums.
Choosing the deductible amount that best fits you is important. The amount of your deductible can be adjusted based on your preference. Raising your deductible will lower your premium, but will also cost more out of pocket if you have a claim later.
Younger drivers are less experienced and often pay higher premiums. Our Young Driver Safety Program encourages safe practices behind the wheel; young drivers (age 25 or under) who complete our program and meet several basic eligibility requirements can earn a discount on their premium.
Ways to Save
These are seven factors that affect car insurance rates. Of these seven factors, several cannot be avoided, but we offer a variety of discounts to reward you for driving safe. Learn more about how your safe driving practices can save you money with our newest program, Driveology®: The Science of Safe Driving. If you haven’t reviewed your policy in the last year, now’s the time to schedule a SuperCheck® with your Farm Bureau insurance agent to be sure you have the right coverage and best rate.