Factors That Affect Car Insurance Quotes

If you have car insurance, you may be like many people who are trying to figure out how their auto insurance company gave them a high premium. While premium rates don’t magically fall from the sky, you can use this guide as a way to figure out how you can adjust your income, expenses and budget accordingly to save on car insurance.

There are many factors that go into your car insurance premium. Some you may know already and some you probably didn’t.

Your driving record. One of the main factors that goes into car insurance quotes is how well you drive. If you have a good driving record, meaning very few speeding tickets, hardly any traffic violations, or no accidents, you can expect your premium to be affordable at best, if not low. If your driving record is bad, your premium will be high.

If you have a bad driving record, you can save on your premium by simply driving responsibly and avoid accidents. Over time, the marks that caused your premium to shoot up will fade in time and your premium will eventually go back to near normal levels.

Credit history. Many auto insurance companies take into account your credit history when you’re looking to purchase car insurance. The higher your credit score, the more likely you are to avoid high premiums. However, if your credit history shows delinquent payments, bankruptcies or any collections, your premium will definitely be high.

For a bad credit history, you can get better premiums by cleaning up your credit report and start making full payments on time. It will take some time for your credit score to rise, but with diligence and patience you will see affordable auto premiums.

Your last auto insurance coverage. Again, this is an area where on-time payments count. If you had previous auto insurance coverage, your next auto insurer will look into that and not only see how much you paid for it, but also how good were you in making on time payments and how many claims you filed. Your premium will rise with your next insurer if they find too many missed payments or too many filed claims.

Location. Depending on where you live, you could be charged a lot more in one place than another. For example, if you live in a city, you could pay more there than you would in a small town, a rural area or even a suburb. This is because the risk of vandalism, theft, hijackings and accidents are more likely to occur in some locations than in others.

Moving may not be an option for you, but you can still save on auto insurance premiums by asking your insurance agent for any available discounts to knock down the price. Also, parking your vehicle in a safe, secured area, such as a parking garage with surveillance cameras, can also help lower your auto rates.

The type of car you drive. This factor can be tricky. On one hand, it is recommended for you to buy a car that is deemed safe by auto insurance companies, which can save you money. In some cases, it means buying a new car. However, buying a new car could also raise your premiums, because their parts are more expensive to replace or repair. Therefore, to avoid rising premiums on a new car, try not to get into an accident and keep your car in tip-top shape. Most importantly, don’t forget about those discounts.

How much you use your car. The amount of mileage you put on your car will further increase your risk of getting into an accident. This in turn increases your premium, if you are on the road too much. Thus, you should try to drive only when you need to, and if you have to take the wheel, avoid getting into an accident and check for discounts with your insurance agent.

Still Feel Like You’re Paying Too Much For Auto Insurance?

The six factors explained above are what go into auto insurance premiums, but ultimately, it is the driver who creates those factors. Therefore, you should always remain a careful and vigilant driver on the road. And if you think that you are still paying too much for auto insurance, shop online to get affordable auto insurance quotes in your area.

staff contribution: Brandon Clayton. For more information, please visit InsuranceAgents.com

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