allaboutwomen

Car insurance price differs from one company to another. An owner of a certain car might be paying higher premium while another person might be paying less premium even if they bought the same car from the same owner and during the same period. If you are planning to purchase an insurance for your car, pay attention to a number of factors that would definitely affect the price of the car insurance.

Now, what affects car insurance price? There are a lot of reasons for the difference in the prices of car insurance. Firstly, the price depends on the car you drive. Generally, the more expensive the car is, the more you will be paying for its premium. The reason for this is the increase in the risk due to its increase in value. Secondly, the location or the place where you are driving might affect the price of the insurance. Since there are higher rates for theft, robbery, vandalism and accident in the urban areas, urban drivers pay more for the car insurance compared to those drivers from small towns or rural areas. Thirdly, frequency in driving the car increases the insurance price. People who use their cars for business and long-distance travelling would normally pay more than those who drive less. Since the car would depreciate faster if it is used frequently, insurance companies charge higher premium. Lastly, the age of the owners and drivers as well as the driving record affect the insurance prices. Since accident rates are higher for all drivers under the age 25, premium is higher. Moreover, drivers who cause accidents must pay higher than those who are accident-free for several years based on police records.

Owners of cars who are planning to buy car insurance must assess themselves properly if the above factors are present so that they would at least have an idea if they will be paying higher premium or less. Based on the foregoing statements, the car insurance price depends on you. However, the insurance company itself and the government through its laws regulate the price of the car insurance as well.