What increases car insurance?

11th Dec 2009 by Tom Lindmark

Basically three things will increase your car insurance cost. Your driving record, the amount of coverage you buy and the value of the vehicle that you drive. If you have lots of speeding tickets or other types of citations the insurance company is going to consider you a higher risk and charge accordingly. If you have something like a DUI then be prepared to pay through the nose. The more insurance you buy or to put it another way the less you are willing to pay if you have an accident the more you will pay the insurance company. Think deductibles. If you want them to pay for most of the damage incurred in an accident then they will charge you more. If you are insuring a 10 year old Toyota Celica, it is going to cost a lot less than insuring a brand new Mercedes. Think about it. The Celica is going to cost them a lot less to fix or replace if you destroy it then will the Mercedes. Then again if you can afford a Mercedes you probably aren't too concerned about the cost of insurance.

This answer is the subjective opinion of the writer and not of FinancialAdvisory.com