Top Factors That Affect the Cost of Automobile Insurance

There’s no way around it — owning an automobile means carrying automobile insurance, unless you want to bear the full financial responsibility for any losses due to theft or accidents. That said, you have a certain amount of control over how much you have to pay for that auto insurance. Let’s examine some of these variables:Theft incidence – Some cars, trucks or other vehicles cost more to insure because of their attractiveness to thieves. These vehicles do not necessarily sit on the high range of the MSRP scale, either; in fact, many less expensive cars fall prey to theft because they lack remote keyless entry systems of other sophisticated electronics found in pricier models. Popular foreign cars such as the Honda Accord and Nissan Altima are popular with thieves because their parts can command healthy prices at “chop shops.” Conversely, decidedly non-flashy cars or models with problematic reliability histories often make the “least stolen” lists. I. Insurance companies pay close attention to these lists — which means you should too.Retail price – Insurance companies actually base much of a premium estimate on the vehicle’s MSRP. Don’t be surprised if your gorgeous Jaguar, Porsche or Mercedes-Benz costs an arm and a leg to insure, even at minimal levels. That’s because high-performance cars tend to inspire high-performance maneuvers from their drivers, and this makes them more likely to turn up in accident and injury reports. That “sensible” subcompact may not get your blood pumping, but the money you save on insurance can keep your bank account from bleeding money.

High-performance luxury cars can mean higher insurance rates.Anti-theft devices – Auto insurance companies respond favorably to these smart accessories options when figuring your premiums. Ask your insurer how adding an electronic alarm or remote keyless entry system could lower your rate. Not every system will automatically qualify, so make sure you have this conversation before you run out and buy that new theft deterrent system.Safety features – Extra safety features on a car can result in a lower risk of death or injury in an accident, a fact taken into consideration when auto insurance companies estimate your coverage costs. Keep in mind, however, that the same airbag systems responsible for lowering your injury risk may also attract would-be thieves. Could this have an undesirable effect on your premium? Maybe, but in this case life and health matter more. Get the safety features.Safety features can save both your money and your life.Demographics – Sometimes it pays to drive into work from that sleep town next door; residents of big, densely-populated cities can expect to pay more for auto insurance. If you are insuring a car driven by a minor, ask about possible rate discounts based on your child’s academic performance, or for the child’s participation in a teen driving awareness program.Of course some items, such as spotty accident history or previous DWIs, may affect your eligibility for affordable auto insurance beyond your control. But grasp the options available to you, and start enjoying more affordable auto coverage!

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