Every auto insurance package is tailor-made to suit its carrier. Sure, there are many different coverage plans, and some better than others – but every plan focuses its attention on the individual policy holder. Have you ever noticed that while you and your friend might have the same plan, that yours is cheaper? There are a number of reasons for this. One of which could be that you chose to have a different liability insurance car plan, but it doesn’t stop there. Let’s see why insurance packages differ among their providers below.
There are concrete factors in the auto insurance industry that no matter what, you can’t fight against. These include your age, gender and marital status. The make and model of your vehicle is also a big contributing factor, but depending on your financial means, can be easily changed to a vehicle more premium-friendly. For argument’s sake, let’s say you have a friend who pays pays a higher insurance premium than you do, is a 23-year-old single male and drives a full-sized Ford pickup truck. Statistically speaking, his age and gender are already working against him. His truck isn’t helping, either.
According to CBS News, men are 3.4 times more likely to get a ticket for reckless driving than women, and 3.1 times more likely to get arrested for drunk driving. The Centers for Disease Control and Prevention (CDC) found that young male adults between the ages 15 and 24 account for 30 percent ($19 billion) of the total cost of injuries sustained or related to motor vehicle collisions. It doesn’t matter that your friend has a pristine driving record. Because the statistics show that young men his age are more likely to cause accidents, his insurance agency lumps him in with the rest.
Now let’s take a look at the vehicle he drives. That full-sized Ford Pickup? It was listed as one of the country’s top 10 most stolen vehicles in 2013. So not only does his age and gender disqualify him for a cheaper insurance premium than his female counterparts, but so does his car. There are however six factors that can (at least after he turns 26) help ease his insurance premium, actually seven if he goes with a liability insurance car policy.
As stated above, there are six factors that can impact your rates. These include:
The seventh factor is the policy you purchase itself. The auto liability insurance plan is required by law in a majority of US states. Why? Because it is fairly inexpensive and protects faultless drivers. But which vehicle types are the most economical when it comes to car insurance?
According to Forbes Magazine, the 10 cheapest cars to insure in 2015 were:
ModelAnnual PremiumJeep Wrangler Sport 4WD$1,134Jeep Patriot Sport 2WD$1,136Honda CR-V LX AWD$1,160Dodge Grand Caravan SE Plus$1,162Honda Odysssey LX$1,163Jeep Compass Sport 2WD$1,164Subaru Outback 2.5i AWD$1,176Ford Edge SE 2WD$1,176Smart Fortwo Pure Coupe$1,186Ford Escape S 2WD$1,190
Your driving record and practices when paired with the car your drive can greatly decrease your monthly premium. Looking for a liability insurance car plan that flatters your wallet? Compare insurance quotes with CoverHound today!