Basically, a car insurance premium is another way of saying car insurance bill or fee. When an insurance company accepts you as a driver, they are taking on a risk that you will sustain some form of motor vehicle incident which could end up costing those thousands of dollars. While most people do not incur any incidents whatsoever, they still must make their car insurance premiums.
Beware if you don’t make your car insurance premiums and drop your car insurance policy or if you don’t attain a policy on a motor vehicle you are driving-you can be in a load of trouble. In the United States, it is mandatory to carry a motor vehicle insurance policy on any moving vehicle that you own (car, motor cycle, boat, etc.); even if you are not driving the vehicle-it still must be insured.
The punishment for not having your vehicle insured can be very steep. You can risk losing your license, paying a large fine and also end up having to pay fines for the next three years following the incident. This punishment varies by state, but officials have really “cracked down” on the punishment for driving without proper motor vehicle insurance. So, it’s most definitely worth it to pay and keep those car insurance premiums up to date and on time.
Unfortunately, car insurance premiums are not inexpensive. Prices vary quite a bit for a number of reasons. Fortunately, you can control some factors that ultimately raise your car insurance premiums. Some of the pertinent factors that will raise and lower your car insurance premiums are discussed further.
The state and town that you will keep your motor vehicle most of the time will govern your policy and its coverage costs. For example, if you live in a high traffic area or drive daily to work in a high traffic area, that will cause your policy to be more expensive than a person that lives in the country and doesn’t drive to work. This is because the driver that is using their car daily and driving amongst many other vehicles is far more “at risk” for an “incident” than the driver that remains in a rural area working from home.
Another factor that will cause changes in your car insurance premiums is your sex and age. It is a known fact that women are safer drivers and have less motor vehicle related accidents than males do. Women also retain less moving violations than men do therefore, a female is cheaper to insure than a male.
The older you get, the cheaper your car insurance premiums will be. That is assuming you are not racking up the accidents and moving violations in your old age.
With that said, a driver with a clean driving record has far less to pay for his car insurance premium than a driver that has had a motor vehicle accident or two or perhaps a speeding ticket or careless driving violation. The cleaner your driver’s license is, the less you will pay.
These are just a few of the factors that can cause changes in the cost of your car insurance. Research your car insurance prior to purchasing a policy and get several estimates-you can barter with an agent for a cheaper rate. Be aware of all the factors that can cause your rates to fluctuate. Drive safely.
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