In the state of Oklahoma, auto insurance is required for operating a motor vehicle. Lending institutions will require more insurance to protect their investments, but if you own your vehicle outright, only liability is required. Many factors go into calculating insurance for each person and their vehicle. There are ways of saving on your auto insurance when you consider what the companies look at.
Location, Location, Location
As with real estate, location matters. It might not be an option for you to move, but insurance companies DO look at location. First, states even vary from state to state. Based on accident frequency and weather, one state might be higher than another. Oklahoma usually suffers because of storms we experience.
Beyond the state, the city you live in is important in evaluating coverage. Do you live in a rural community or perhaps an urban area with more crime? And even your residence is considered. Especially in Oklahoma, insurance companies charge less for vehicles that are protected from the elements or theft. Having an enclosed garage is easier on the monthly premium.
Not only do insurance companies care where you live, they care about how much of a risk you might be. Of course, your driving record is most important. If you have had past accident claims and speeding infractions, your premiums will reflect that risk.
Also, age, sex, and marital status are figured into your insurance. Drivers aged 25 and younger have higher payments simply because of their inexperience behind the wheel, with males being higher. Again, safe driving will help at this time to keep the payments lower. And don’t forget to keep up the good grades if you are a student, it will help rates.
How is your credit score? Insurance companies will look at your score to determine your risk. The claim is if there is a lower credit rating, the driver is more likely to take risks with driving. Cleaning up your credit and achieving a decent score will help to save on insurance.
Finally, the frequency of your time behind the wheel will affect your rate. Some driving for business cannot be avoided, but reducing commuting distance to your place of employment can help with insurance costs.
Our dream car might not be the option for lower insurance costs. There is a huge amount of risk when driving a motorcycle, so expect to pay more. Insurance companies will also evaluate other cars, trucks, and SUVs based on their safety ratings. The higher a vehicle scores on a safety test, the lower the insurance. Be sure to check out our article on the safest vehicles if you are in the market.
But besides crash safety, vehicles are evaluated with cost in mind. Luxury vehicles will cost more because it costs more to fix, or replace if stolen. Also, sports cars are considered riskier because of the speed generally driven behind the wheel.
There are some things that we cannot change to lower insurance, but buying smart and driving smart are your best bets in keeping insurance rates low.