Do you pay more for auto insurance than your friends do?

Best friends compare notes on a lot of things: husbands and wives or boyfriends and girlfriends, kids, how they are doing financially and what they are paying for auto insurance.

The latter can be a bone of contention for a lot of people. You just can't understand why your rates are so much higher than someone who is just like you. Well, here's some information that may shed some light on one of life's little mysteries. Many factors affect your premiums, some you can control, others you can't. Let's focus on those you can control.

What you drive has a fairly significant impact on the price you pay for car insurance coverage. If your best friend is driving a 10-year-old car and you prefer to trade in your car for a newer model every couple of years, you'll be the one paying more for insurance. When in the market for a new car, it's a good idea to do a little research to determine how that car might impact your insurance costs.

How you drive can also affect your premium. If you have a bunch of speeding tickets and an accident or two on your record, the insurance company most likely considers you a higher risk driver, and you'll probably have a higher-than-average insurance premium. Safe drivers with few or no accidents generally pay lower insurance premiums.

Where you drive (or live) can also have a big impact on your bill. Driving, living and parking in a neighborhood that has high crime, theft or vandalism statistics (according to police records), means higher risks to you and your car, and therefore higher premiums.

The distance you drive can also cost you more since the possibility of an accident increases with every mile on the road. To reduce your miles, and your premium, think about ways to reduce your time in the car. Among the options worth considering are using public transportation, carpooling or bicycling.

And, of course, your specific policy characteristics can directly affect your premiums as well. A low-deductible, high-coverage limit, additional coverage add-ons or multiple insured drivers can easily raise your premium. When seeking auto insurance quotes be sure to look into how all the options you are considering will impact the bottom line.

Courtesy of ARAcontent