Extra Charges on Auto Insurance

By: Fred Jones

The mass distribution of automobiles had significant effect on the culture of life, especially the middle class. Automobile has been incorporated into all parts of life from television shows, movies, books and music. The worldwide spread of the automobile has allowed easier access to remote place. The development of automobiles has changed our lives as we know it or not. Different methods of combining business and cars made our lives easier, such as the drive-thru fast food, gasoline station grocery shopping, and some drive through postal box. Automobiles also affected our economy as well through gas prices and more. With the mass distribution of automobiles, auto insurance has become one of the basic needs of society today as well.

Auto insurance is not considered a luxury anymore but a basic need of our lives. As our lives depend on automobiles more and more, the importance that it has increases, thus a plan to protect the vehicle has become a must. Today, there is wide range of auto insurance companies to choose from and many different plans to choose from as well. Many auto insurance companies set up websites to offer different auto insurance plan for the customers to see and sign up, making it more convenient for customers to compare and choose between plans and companies.

For smart shoppers, there are many things to look for, since there are premium charges and discounts for people where applicable. The insurance premium can be either mandated by the government or determined by the insurance company in accordance to a framework of regulations set by the government and it is determined according to statistics collected for driver habits. Some of these factors include car characteristics, coverage selected, profile of the driver and their usage to the car.

The first and obvious yet surprising factor that determines premium charge is the gender. Men on the average drive more miles per year than women do, and have proportionally higher accident involvement. Though the adult rates are generally unisex, the youth surcharge is lower for young women drivers than male drivers. Following up with the youth surcharges, age is a determining factor as well. Teenage drivers who have no driving record will have higher car insurance premiums, but many insurers offer a good grade discount to students with a good academic record and resident student discounts to those who live away from home. Marital status is a factor as well, where drivers who are single and unmarried are often charged higher insurance premiums as opposed to married drivers since single people hold less responsibilities.

Vehicle classification is also a factor. People with sports cars, muscle cars, and some sport utility vehicles as well as motorcycles would have higher insurance premiums as opposed to other cars, since those cars cause more accidents statistically. There are other factors such as distance the car travels, Odometer based systems, GPS based systems and the area you drive in also affects your auto insurance bills. So do your research, it is easier to do today since everything is online, and watch out for those premiums.

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Fred Jones
automobile insurance

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