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9 Key Factors That Influence Your Auto Insurance Rates

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9 Key Factors That Influence Your Auto Insurance Rates

Even with a perfect driving record, you are likely to pay a higher car insurance premium. This is because insurance companies consider a lot of factors before deciding the cost of your auto insurance.

Here are some factors that influence your auto insurance rates:

1. Age

Young, inexperienced drivers have a marginally higher accident rate than older drivers. Therefore, drivers younger than 25 are generally charged higher rates.

2. Marital Status

If you are single, your premium will be higher than average. Married people are viewed as more responsible drivers and thus pay lower premiums. However, the difference in rates does not vary significantly.

3. Location

Each state has its own regulations regarding auto insurance, and rates vary by zip code and neighborhood. If you live in a location that has a high crime rate or is prone to natural calamities, your premium will be higher.

4. Credit Score

Your credit score can affect your insurance premium. A good credit profile proves that you are a responsible driver, thereby getting you a lower premium rate.

5. Driving History

If you have a history of tickets and violations like DUI, you will be paying more than a driver with clean records. Most ticket and non-injury accidents stay on your records for three years, while injury accidents stay for five years. Some companies offer a discount if you have taken an accident prevention course.

6. Annual Mileage

Business commuters with higher annual mileages are charged more since they spend a lot of time on the road and are likely to have a higher accident rate. If you’re a fairly low-mileage driver, you can save up on car insurance by choosing pay-per-mile insurance.

7. Vehicle Size and Engine

Large cars with good safety ratings have lower premiums than small cars. Similarly, high-performance vehicles, like sports cars, are more expensive and have high repair costs, so the insurance premium will be higher.

8. Safety Features

Safety features like airbags, automatic seat belts, and traction control can reduce your auto insurance rates. However, some high-tech safety features like Advanced Driver Assistant System may increase the rate since these technologies are expensive to repair.

9. Your Insurance Company

Rates vary substantially from company to company, so shop around a bit to find a carrier that suits your budget. Your local insurance agent is likely to give you a much better rate.

These are a few factors that can affect your auto insurance rates. For any further queries regarding car insurance, contact the experts at Remland Insurance in Orange, California. We are ready to assist you with all your insurance needs today.


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