Car insurance companies take various factors into account when calculating premiums. Factors like your driving record, age, location, type of car, and coverage needs all play a role. Knowing these factors can help you to secure the best possible rates.

The following factors will determine your auto rates: These factors will help you save money on your insurance premiums.

1. Where you live
So, here’s the deal: your location plays a big role in your car insurance. Insurance rates differ in different states. In these states, your ZIP code is in the spotlight. Some places have higher odds of car theft, accidents, you name it. It’s just the insurance game, you know?

2. Your demographics
Car insurance rates can be influenced by your age, marital status, and gender. Even your job and whether you’re a homeowner can make a difference.

Insurance companies often identify individuals with specific behaviors as less risky, leading them to reduce the rates for these people. It’s all about weighing the factors to determine the level of risk.

Except that you are ready to tie the knot, relocate, change jobs to get cheap auto insurance rates, your demographics are difficult to change.

3. The car
Your car plays a big role in how much you pay for insurance. Flashier cars tend to rack up higher premiums because, let’s face it, they’re expensive to fix or replace.

Also, some cars are like magnets for thieves, more accident-prone, or a headache to fix because of rare parts or fancy materials. Cruising in one of these rides might come with a higher insurance rates.

If you want to buy another car, do yourself a favor by comparing the rate. You have a higher chance of saving on insurance premiums if you buy a car with lower insurance rates.

If you car is protected through safety features like anti-theft device, you stand a chance to get lower insurance rates.

4. Your Coverage
How much insurance you buy impacts what you pay every month. Usually, the more the coverage, the higher your premiums. Your typical car insurance package covers liability, collision, and comprehensive coverage.

Once you’ve got the basic car insurance as recommended by your state, you’ve got some freedom to customize the type and amount of coverage. This lets you have more control over keeping those costs in check.

If your car is old with a modest value, you could cut some costs by cutting or probably skipping collision and comprehensive coverage. If you own an older car, the payout might not make up for the coverage cost if it gets totaled in an accident.

5. Your deductible
After making a claim on auto insurance, the deductible amount is what you pay from your pocket before the insurer steps in. Increasing your deductible can cut your premiums since you’re shouldering a larger share of the cost if something happens.

6. Car Usage
The more you drive, the higher the chance of accidents, and that plays into your car insurance premiums. Furthermore, if you’re driving under 12,000 miles annually, there are chances that you might get lower car insurance rates. Some insurance companies in the United States pay-per-mile car insurance. Here, you are expected to pay a flat amount each month and an additional charge for every mile you drive.

Read the complete article here https://frugalinsure.com/factors-that-determine-your-car-insurance-rates/