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Five Factors That Affect The Price You Have To Pay for Auto Insurance

There are several factors which can affect the price you pay for auto insurance in Genoa, NY. Some of the key ones are outlined in this article, and you should make sure that you shop around to get the best deals.

1. The Make and Model of Your Car: It stands to reason that the more expensive a car, the more expensive your car insurance will cost, but other factors can affect this, such as how likely that type of car is to be stolen, and what modifications have been made to it. The system used to devise safety and security risks was devised by the Insurance Services Office. You can do a Google search for more information on this, and lists of cars that are expensive to insure.


2. The Period Over Which you Pay the Premium: Paying your premium in monthly installments will usually be more expensive than paying upfront in full. This is because you will be paying 'fractional premium fees' for breaking up the payments. Many insurance companies will not make you aware of this, and do their utmost to sign you to a more expensive, pay-monthly program. Check your monthly statement and see whether you are being charged these fees.


3. Your Credit Rating: As with most types of business, customers that have a better credit rating will pay less, as they are regarded as less of a risk. This is because there is more security for the insurer as they are more likely to get their monthly payment on time.


4. Adding Teenage Drivers to your Policy: Many people believe that they have to add their teenage son or daughter onto their auto insurance policy as soon as they reach licensing age, but this is not true. They should only be added once they actually have a license.


5. Canceling Old Policies: As soon as you switch insurers you should make sure that you cancel your old policy in writing. This means not simply ignoring the renewal letter from the previous insurer, as you will then be cancelled for non-payment and get a 'black mark' on your credit rating - and as we have already discussed, a poor credit rating can boost up the cost of your premiums. Make sure that you have the new insurance policy in place before cancelling the old one, as the old company may need to see that you have a current insurance certificate before they allow you to cancel. Also, update your car dealer if you change insurance providers if you have outstanding finance on the vehicle.

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