As a motorist, you are expected to carry auto insurance coverage on your vehicle. This coverage ensures that you can pay for any damages that you cause if, or when, you are involved in a wreck. It can also cover your medical expenses, loss of property, and roadside assistance if you get full coverage on your car.
However, you need to know what factors go into designing a policy for you when you contact the insurer. The company will use a number of criteria to decide what kind of auto insurance to issue you and how much to charge you for it.
One of the key factors that insurers consider is the age of the people who will own and be insured on the policy. As a general rule, if you are especially young or especially old, you can expect to pay more for your auto insurance premiums.
The higher costs reflect the belief of many insurers that drivers under the age of 25 and over the age of 65 generally have slower reflexes and take greater chances on the road. People in these age demographics are more likely to be involved in accidents that will cost the insurer money. With that, the insurer will charge more per month for your auto insurance policy if you are in either of these age brackets.
Type of Vehicle
Another factor that will come into play when the company designs your auto insurance policy is what kind of car that you drive and will insure with it. If you drive a sports car, four-wheel-drive truck, or large sports utility vehicle, for example, you can expect to pay more for your auto insurance than if you were to drive and insure a four-door sedan.
These types of cars are worth more money and often the target of thieves. They also cost more money to repair if they are damaged in wrecks. To recoup any future costs that it might have to pay out if or when your car is stolen or you get involved in an accident, the insurer will charge you more money for your auto insurance premium.
These are a couple of the factors that the typical auto insurer will use when designing a policy for you. They influence what kind of coverage that you can get for your vehicle. They also play a key role in how much you pay for premiums.