US Car Insurance Rates, Car Insurance Rates USA, US Auto Insurance Rates, USA Auto Insurance Rate

By: EconomyWatch   Date: 26 May 2010

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US car insurance rates refer to the amount an individual has to pay for buying auto insurance cover. US auto insurance rates depend to a large extent on the coverage, with the rates increasing proportionately with the amount of coverage one chooses.

As per research conducted in 2008, an average US citizen spends $700 annually on car insurance. However, one can obtain a lower US car insurance rate by understanding the factors that lead to an increase in the insurance premium.

Factors That Influence US Car Insurance Rates

It shouldn’t be surprising to learn that US car insurance rates are highly dependent on the policyholder’s driving habits. Although insurance coverage provides for financial liabilities and damages caused by traffic violations or accidents, insurance companies tend to raise the premium once a claim has been made. An individual with a relatively good driving record will have to pay lower premium, since s/he entails lower risk for the insurance company. The US car insurance rate also tends to be higher for people who have not had any insurance cover for a specific number of years.

Insurance companies also consider the annual mileage of a policyholder’s automobile. Insurers believe that higher the number of kilometers you cover, greater are the chances of you meeting with an accident. Thus, annual mileage adds to your US car insurance rate. Some US insurance companies may offer discounts for keeping your car parked as much as possible. An additional discount will flow in for parking in a personal garage rather than in public lots, driveways or streets.

The location and the route one takes while driving affects the US car insurance rate. An insurance company will consider theft and vandalism records of the locality while calculating the premium. Personal attributes, such as age and sex, also influence the insurance premium. As per convention, male drivers tend to pay high insurance rates for their sporty instincts. Similarly, car insurance will be expensive for young drivers due to lack of experience.

Apart from individual attributes, there are several other factors that determine the US car insurance rate. The coverage an individual opts to buy and the deductibles determine what you have to pay as premium.

The crucial thing to remember is that one should understand all the significant factors affecting the car insurance rate. This will help you choose the policy that is best for your needs.


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