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Arizona Factors that Affect Car Insurance Rates

Arizona car insurance is necessity for all drivers who own and operate a vehicle. It is necessitated by state and federal law. The rates for Arizona car insurance are, on average, already higher than those of the national average. They can cost considerably more if a motorist is not careful to research the most affordable rates. The average price for an Arizona car insurance policy in 2009 is currently $1,818. By comparison, the national average is $1,780 . Within the state of Arizona, rates have risen considerably over the past several years. For example, the average premium in Arizona is 11% higher in 2009 than 2008. 2008 was 9% lower than 2007 . There are many factors that an Arizona car insurance company takes into considerations when they are determining your premiums. In some instances, you will be able to manipulate these variables in your favor. In other cases, you will not have control over the variables.

Factors that Determine Arizona Auto Insurance Rates

Two common factors that you will not be able to influence are your age and your sex. Your age is a considerably important factor. Motorists who are under the age of twenty five or who are over the age of sixty five will pay higher Arizona automobile insurance rates than other drivers. The increase in premiums for younger car drivers is due to their inexperience and their assumed tendencies toward recklessness. The increase in Arizona auto insurance rates for senior citizens is due to the assumption by car coverage companies that older citizens suffer from diminished physical and mental capacities. Your gender is also an important factor. According to data collected from various sources, males are more often involved in car crashes than their female counterparts. Generally, female, middle aged drivers are considered to be the safest segment of motorists to insure. On the other hand, young males under the age of twenty five are considered to be the most expensive to insure among all age groups. If you fall into one of the aforementioned categories, your Arizona automobile insurance rates will be higher. There are other variables that can be manipulated in your favor to compensate for these.

Your driving history is the most important factor that an Arizona car insurance company will take into account when they quote you a rate on your car coverage premiums. This is because your driving history is considered to be indicative of the patterns and behaviors you engage in while you are on the road. It goes without saying that more accidents you have been involved in or the more tickets you have received will negatively impact the rates that you will pay for your Arizona car insurance. Many states, such as Arizona, will offer a motorist the option of taking a defensive driving course in order to remove the received ticket from your record. It is highly advisable to do this if you can. Many car coverage companies in Arizona will also offer good driver discounts to their customers who have maintained a clean driving record for three to five years. If you do not qualify for this discount, you can begin taking steps now to clean up your driving record even if it takes you a couple of years to do so. The savings from a good driver discount can total 20% of the policy's purchase price. Therefore, it is a highly desirable goal to look towards.

On a slightly smaller scale, your credit history will also affect the rates that you pay on your Arizona vehicle insurance. Your credit history is considered to be indicative of how responsible you are as a person. It is assumed that the amount of responsibility you possess will extend to other areas of your life, such as your driving patterns. Whenever you purchase Arizona car insurance, you are entering into a legal and binding contract with your provider. They provide you with a service, and you are expected to pay the fees for this service. Your credit history shows a pattern of behavior in how you handle your legal obligations. An Arizona coverage company likes to know that you will honor your contract with them. If you have a poor credit history, they will likely charge you higher fees in order to insulate them against any future financial loss you may cause them.

Additional Factors for Determining Car Coverage

Your car is going to be a very important factor when it comes to determining your car coverage rates in Arizona. This will be due, in part, to the fact that your car will also determine what forms of insurance and the monetary amounts of insurance that you will need to buy. If you buy a new car, your lender will more than likely require you to maintain collision insurance in order to protect their collateral. Many motorists who have purchased a new vehicle also like to purchase comprehensive insurance and GAP insurance as supplements to the collision insurance. The make and model of your vehicle will also determine what monetary amounts of Arizona vehicle insurance that you need to buy. An expensive, imported car will be much more costly to fix in the event of an accident. Therefore, you will need to purchase higher monetary amounts of Arizona coverage to ensure that you do not have to pay any other out of pocket expenses other than your deductible.

The deductible that you select at the time you purchase your Arizona policy will also have an effect on how high your premiums are. Your deductible is the amount of money that you pay out of pocket before your insurance company will fix your car. Generally, the higher your deductible is, the lower your monthly Arizona car insurance premiums will be. However, you want to make certain that the deductible you choose is an amount of money you will have readily available to you if you should ever be involved in an accident. You will also want to make sure that you do not choose a deductible that is too high. For example, if you choose a deductible that is $1,500, and the estimated repair cost is only $1,000, you will still have to pay the $1,500 to have your vehicle fixed. Your insurance company will keep the difference.

There are many variables that will affect what you pay in Arizona car insurance rates. In addition to the aforementioned factors, your personal statistics, the kind of car you wish to insure, and your coverage needs will affect the rates that a company will quote to you on your Arizona car insurance. Education on all of the different variables that a carrier takes into consideration will be your best aid as you search for the perfect provider. You are under no obligation to accept the first quote that you receive on your car coverage. This is why receiving a car coverage quote can be beneficial to you. It will allow you to view, side by side, multiple quotes from multiple providers on the policy you are interested in purchasing. After you have narrowed it down to several companies, you can call an agent from that company to make further inquiries.

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