What Impacts the Price You Pay For Auto Insurance?

Many factors can affect how much you pay for auto insurance. Most insurers start with demographics, but personal behavior matters too. What matters most to insurers? It is a variety of reasons but some things are out of your control.

The Gender Gap

While it might sound discriminatory or unfair, how you identify might increase your premiums. Statistics show women are more likely to avoid accidents, less likely be cited for moving violations, such as driving while impaired or speeding, and tend to buy cars that cost less to insure. Women also don’t drive as much as the typical male. Auto insurers consider these factors when calculating premiums.

Experience Behind the Wheel Counts

Inexperienced teenagers, not surprisingly, are the priciest group to insure because they have more accidents. Once a person turns 25, premiums typically start to drop — but they start to rise again once you turn 60.

To Have and to Hold

A person who marries, even in their early 20s, can expect their auto premiums to drop. Married people get into fewer accidents than singles and they file fewer claims. Why? Experience behind the wheel. Perhaps a mindset to take fewer risks. Marriage also represents a commitment, an added responsibility. Insurance companies notice.

On the Street Where You Live

Does your hometown or neighborhood have a higher risk of auto theft? Do you live in a densely populated area? It’s important because most accidents occur close to home. Do you live in a rural area where it’s more likely deer or other wildlife might damage your vehicle? No matter the size of your hometown, some carriers offer discounted auto insurance rates if you own your own home.

How Spotless is Your Driving Record?

The car itself, along with how you drive it, is always important to insurers. The model, age and condition of your car, and how many miles you drive it, are huge factors when it comes to calculating insurance costs. Do you stay away from fender benders? Have you been cited for impaired driving? Should you fight that ticket for a moving violation? Certain sports cars might be associated with high-risk activities and thus subject to higher rates. A model’s safety record and ratings history differ from car to car.

Personal Behavior Aside from Driving

Criminal records can hang with people for years. Insurers make themselves aware of your record away from your vehicle. If you get into trouble, there are resources to help. Even something like credit history — good and bad — is fair game for insurers to consider. Good behavior doesn’t hurt auto insurance premiums, for example if you take extra defensive driving courses, insurers might be open to giving you a break on your rates. Even if they don’t, what you learn in a defensive driving course could make you a better driver and that could lower your rates.

The Insurance Bundle

What kinds of insurance do you have? Life, home, renter’s? How long have you been a policyholder? By bundling your insurance with SelectQuote, you could get lower rates across the board, including auto. How you address your auto insurance — from the amount of coverage, to deductibles and everything in between — factors in.

What’s in Your Control?

When it comes to auto insurance, there are many factors, and a lot you can control. Some details, though, are out of your hands. Don’t worry about living the perfect life, just be as responsible as possible and lower insurance rates may follow.

 

Related Articles

How Much Car Insurance is Enough?

Questions to Ask When Financing a New Car

Leave A Reply

Navigate