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Factors that Impact the Cost of Auto Insurance Policy

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Below are the factors that impact the cost motor insurance:

• Deductible:

Deductible is an amount of money which a customer pays out of the pocket when he/she gets an accident. Higher the deductible results in lower the insurance cost.

• Age:

Policyholders with younger age have higher insurance rates.

• Gender:

As the health issues happen more to the females, so they have high insurance cost than males.

• Demographics:

People have to pay more if they are living in high crime area in comparison to the people living in low crime area.

• Moving Violation:

Uncontrollable fast driving speed and other violations create negative impact on the insurance cost. Follow the driving rules to keep the cost of the insurance lower.

• Vehicle Choice:

Insurance cost for sports cars can cost more than sedans and other cars. So, customers have to look into the cost of insurance before purchasing it.

• Driving Habits:

Miles average of driving the vehicle also plays a role in determining the cost of the insurance.

• Theft Deterrent Systems:

Systems such as alarm on the vehicle help in low the cost of insurance.

• Safety Devices:

Such as Air-bags, anti-lock brakes etc.

• Accident Prevention Training:

Insurers offer this discount, if the policyholder or driver has driving educational training.

• Multiple Policies Plan:

If a customer has number of policies, insurers offer discount in such case.

• Payment Option:

Some of the Insurers offer discount if the customers pay the bill at one time instead of paying in instalments.

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