Liability Auto Insurance

When researching the most affordable liability auto insurance rate, it helps to know what statistical components most insurance companies take into consideration. Since the insurance business is based on intelligent hedging, several commonalities show up regularly in auto premium calculations. They include:

• Driving record. You play; you pay. Your personal driving statistics are perhaps the most important component of your premium. Speeding or other moving violations count against you, but accidents will drag you down the furthest, causing not only damage to your car or yourself, but also bringing the onset of raised premiums or even dropped coverage.
• Age of driver. Car insurance for the young driver can be more expensive, but premiums tend to drop dramatically for drivers over the age of 25 with good driving records.
• Gender. Some companies may use data demonstrating more accidents by gender to charge higher premiums to men. This practice may be prohibited in some areas.
• Car. One of the bigger drawbacks to having a sweet little sports convertible is that the insurance on them tends to be much higher than on the good ol' practical sedan. This is not a direct penalty for being cute-but indirectly it is. Such cars are more often theft targets, cost more to repair and are involved in more costly accidents. On the other hand, driving a safer, more reliable vehicle is one of the quickest ways to lower your premium.
• Lifestyle. No, it doesn't seem fair, but people who are married, or married with children, typically have lower incidences of accidents, and therefore pay lower premiums. Likewise, if you live two miles from your workplace and don't use your car very often for travel, your premium could be negotiated down. On the other hand, if you reside in a high crime rated area or city, your premium may shoot up.
• Credit history. Believe it or not, your bill-paying history is also factored into many premium calculations. Insurance companies tend to overlook a lack of credit history, but they do not look kindly upon people with poor credit, because often these people also file more accident claims.
• Additional coverage. If you're going for liability-only insurance, this is obviously going to be less costly than premiums including features like collision coverage. On the other hand, one accident may wipe you out financially if you only have liability insurance.

State laws change all the time and many of these practices may no longer be permitted.

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