Now that you have your car, is getting the right insurance really that important? Yes. Besides the legal requirement of car insurance, the benefits of quality coverage can be directly felt during car accidents or vehicle emergencies.

However, getting car insurance can sometimes be as sticky as buying a car itself (see the budgeting-help articles on car buying). When buying car insurance, we want the widest coverage of benefits possible with the lowest possible premiums.

But what gives a driver the edge on car insurance premiums? Often, insurer calculations are computed based on the factors that might affect your future claims. There are numerous factors they may consider in deciding the cost of an individual policy:

1. Vehicle: Different vehicles have different insurance costs. Some vehicles cost more to insure because of purchase price, risk of theft, repair costs, and the overall safety of the car. For instance, driving a station wagons or van commands lower insurance costs. It is big enough to cause less damage to the passengers, has lower repair costs, and lower risk of theft.

2. Driving history. More accidents or violations within a 3 year history will raise policy prices. Some insurance companies offering comprehensive coverage and extremely low rates may not even consider drivers with any undesirable occurrences in their driving history.

3. Sex: The ladies have better chances of bagging premiums ten to twenty percent lower when compared to men. While the frequency of car accidents is similar between men and women, it was found that women do less damage than men when accidents happen.

The reason? Speed. Apparently, because women generally drive slower than men, women incur less damage when they crash. Insurers pay lower claims to women. Also, women generally drive fewer miles than men.

4. Age: The younger and those with less driving experience are often charged higher premiums. However, good grades discounts are given to driving students with commendable academic standing. Premiums are generally when the driver reaches age 25, as older or more experienced drivers tend to have less accidents. Senior citizens also get premium discounts as they drive fewer miles in their retirement.

5. Location of vehicle: Insurers consider the costs of car purchase and repair in the area when ascertaining policy prices. Accident and theft levels are also a factor that can increase insurance premiums.

6. Internet purchase: Some insurance companies give discounts when the insurance is purchased directly from the internet.

7. Profession: Insurance firm 21st Century Group found that women and men in certain scientific fields tend to care more for their automobiles and driving because they understand how the car works. These lower premiums are awarded to engineers. Other insurance firms also offer lower premiums to drivers of specific careers, like teaching and the military.

Of course, you may not be able to change certain factors that affect your premium costs. But knowing what insurers find important before you purchase a policy may help you reap discounts on your premium if you find that any of the factors apply to you, or allow you to purchase more comprehensive coverage.

References

Insurance Information Institute. What determines the price of my policy?
http://www.iii.org/individuals/auto/b/whatdetermines/

Insure.com. 5 Ways to Get Auto Insurance Discounts.
http://articles.moneycentral.msn.com/Insurance/InsureYourCar/5waysToGetAutoInsuranceDiscounts.aspx

Sage, Bobbie. Save On Your Car Insurance with an Insurance Friendly Vehicle