According to the Bureau of Labor Statistics, the average American spends more than $1,000 annually on car insurance. While this amount does not seem large when compared to other expenses that adulthood entails, it can add up to about $94,000 over the course of a lifetime of driving, Car Insurance.com cites. Therefore, it is important to understand how your rates are determined in order to save as much as you can.

How you drive:

Your driving record is the key factor in calculating your insurance rate and is based on a point system.This point system is intended to identify dangerous drivers and penalize them accordingly. For example, the more points you accrue for traffic violations, the higher your rate. While Massachusetts does not let you trim points from your record, there are defensive driving courses you can take to help lower premiums and improve your record.

Keep in mind that even safe, young drivers with a clean driving record still will have higher premiums simply based on their age and gender. However, there are steps younger drivers can take to ensure the best deal possible.  

Where and when youdrive:

Rates vary based on certain geographic areas such as ones that have harsher winters or higher crime reports. This is because insurance companies calculate how much damage is likely to occur to your car and the amount of risk they are taking on by insuring it.

How often you drive your car also determines how much you will pay for insurance. This is another risk-assessment strategy that car insurance companies do. The more likely you are to get into an accident or need repairs, the more you insurance you will have to pay toward your car.

What you drive:

When shopping for a car on a designated budget, keep automobile insurance rates in mind. The greater the car value, the higher your insurance rate. This is because new cars’ repairs cost more in the event of an accident, and they are more susceptible to theft. However, used cars do not always require collision insurance, which typically is a given with new cars.

For driving tips in Boston, visit Boston Discovery Guide. In addition, Mass.Gov’s Roadway Safety Tips is a good resource for drivers and pedestrians.

Remember, car insurance is an essential expense. Click here for a free insurance quote. For more information about factors that determine your premium rates, contact your local insurance agent.

Vargas & VargasInsurance is dedicated to keeping Massachusetts’ families safe by providing quality Automobile Insurance and Homeowners Insurance. Call one oftheir agents today at 877-550-0025 to learn more about how they can get you the coverage you deserve at a price that fits your budget.