subject: Reduce Your Irvine Auto Insurance Costs [print this page] Reduce Your Irvine Auto Insurance Costs Reduce Your Irvine Auto Insurance Costs
An insurance company's first action when considering offering car insurance is to determine the amount of risk to which the insurance exposes the company. The greater the likelihood of a claim, the higher the company sets the premium in order in minimize loss. When deciding the amount of risk involved, insurance companies consider both the car and the driver. An Irvine auto insurance policy will base the premium on available facts regarding both.
The insurance industry has access to an extensive array of facts regarding every make and model of car manufactured in the world. Insurance companies have their own statistics based on crash tests done on various vehicles, and the industry's experience with each car. There are statistics available about the frequency of repairs and the costs of repairs for different vehicles, the kinds of accidents cars tend to be involved in and how well the passengers fared in accidents as far as fatalities and injuries. Insurance companies know which cars cost most to repair and whether or not safety features such as airbags and anti-lock brakes will reduce the degree of risk and so the premiums. Anti-theft devices, especially ones that provide car-recovery capability, will help reduce insurance costs, especially on cars that statistics show are most likely to be stolen. When records show that a vehicle is efficient, well made, generally free of flaws and gives drivers and passengers superior protection in the event of an accident, then the insurance company is much more likely to want to insure that car for a reasonable price. High-end automobiles that sport high-performance motors, body work that is costly to repair and have a reputation for bringing out the speed demon in drivers will have the highest premiums. Insurance agents know that drivers with the secret agent 007 mentality, driving a car that James Bond would enjoy, are very poor risks. Anywhere insurance is sold, including for Irvine auto insurance, the premiums will be greater. Insurance companies also have the statistics to show that insuring young, new male drivers is a larger risk. This group of drivers are more likely to have an accident, and more likely to have a deadly one, than a similarly experienced young female driver. As drivers mature into their 30's and older the higher risk between different genders dissipates. The cut-off seems to be three years of experience. Drivers below that threshold of experience have the worst driving record as far as accidents compared to miles driven. Only drivers at the other end of the age spectrum--drivers over 70--have a worse record. Young, inexperienced drivers can reduce premiums by taking special driving courses that insurance companies have approved as having a true effect on reducing accidents. Irvine insurance agents should know the local schools and resources for getting training that can make premiums more affordable.
Insurance companies have additional risk factors they can consider along with the drivers gender, driving experience and age. One powerful indication of a driver's future driving record is his or her past record. If the driver has no accident or moving violations for the last three years, that is a good predictor of the driver's expected performance in the next years. One moving violation can easily increase the annual insurance premium by $900 until the traffic violation falls off the driving record, three years later. Location is important to premium costs. Areas with heavy, fast traffic, lots of pedestrians and more auto theft activity put the insurance company at greater risk, and the premiums charged will reflect the risk. A car owner with a good credit score is considered a better risk, since insurance companies have found a correlation between being financially responsible and being a responsible driver. A poor credit score can double the premium a person must pay. Another measure of risk is mileage the car will be driven. A commuter who is on the road driving many miles each day puts himself, the car and the insurance company at more risk, and will pay a higher premium.
Drivers are required by law to have insurance so the need for insurance will never go away. It is a driving expense as surely as buying fuel and paying car taxes. The savvy driver who wants to control his car insurance premiums will make sure his choice of car, his financial affairs and his driving style all make him a good risk and earn him the best possible car insurance premium.
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