When shopping or looking for car insurances, you might get tempted by some policies offering reduced amount with lower amount of coverages or by increasing your deductibles. In broad terms there are two main factors that decide the premium, rates and coverage of your auto insurance. You may not realize it, but the overall rate is affected by various factors. Here we have the list of the factors that can help in making your decision. As you will be able to reduce your payment with maximum coverage possible.

DEMOGRAPHIC FACTORS:

• The place where you live: The area of your residence and work matters a lot. Every city has few points where accidents take place very often and depending on this ratio the rates are adjusted.
• Your Marital Status: Through several surveys it was determined that married people have fewer accidents than single people.
• Profession of the owner: The car insurance companies also approximate the risk of accidents due the owner’s job. They would adjust the premium depending on the usage and risks.
• Credit Scores: Most of the car insurance companies look for credit scores when determining the rates. There is no specific point where your credit score begins to affect your rate but if considered in general, lower the score means higher insurance premium.
• Gender and Age of the owner: Mostly young males and older females are considered to have higher accident risks compared to young females or older males. This difference don’t cause much difference but does have impact to certain extent.

CAR-RELATED FACTORS:

• Size of the vehicle: Large vehicles are safer, secure and sturdy than smaller cars. Therefore, larger cars with good safety ratings demands for lower premiums than smaller cars with otherwise safety ratings.
• Chances of theft: It is not necessary that very expensive or good-looking has high chances of theft. There are few models in every time which are more attractive to thieves. These increases or decreases the overall rate accordingly. Having anti-theft alarms and features can also lower the rates.
• The age of the car: The chances of major faults are present in old cars compared to the new cars. There are also chances of the old to be ‘totaled’ in an accident compared to any other. With the more risk attached, the rates for old cars goes while down for young cars.
• Safety Ratings: safety ratings refer the damage a passenger would face in any accident. Therefore, higher safety ratings mean lower passenger’s medical bills and vice versa. Owning a car with higher safety rating will not only be a good decision for safety of your loved ones but also reduce your premium.

All the described demographic and car related factors can help you look for the best quote available. There are several sites like https://www.iselect.com.au/car/ which allows you to compare several quotes and polices to chose the best one. There are also counsellors, which are available for advices and guide while selecting a car insurance policy.