Factors that Affect Your Auto Insurance Rates

Posted on February 23, 2018 by Lenz Balder Admin

Auto insurance rates are not “one size fits all”. There are many factors that determine what you will be paying for your auto coverage. It’s important to know the main factors that insurers use to set your rates. We have put together some of the main ones that you should be aware of.

1. Address: Where you drive and park your car has a large impact on what you pay for coverage. Drivers in urban areas tend to pay more than rural area drivers – due to vandalism, theft, and crashes.
2. Insurance History: Claims can potentially have an effect on your rates. If you have made a number of claims, of any kind, on your policy in a short period of time, such as three claims in three years, expect your car insurance rate quotes to be higher.
3. Age: Younger, less experienced drivers often pay more for car insurance than older drivers.  Statistics show that drivers under age 25 have more accidents than older drivers, and drivers between 50 and 65 usually have the lowest accident rates. Typically if you are under 25, you will pay more for insurance and if you are between 50 and 65, you will pay less.
4. Vehicle: Insurers take into account the car model’s claims record. If you own a vehicle that is expensive to repair, causes more damage to other vehicles in an accident, or is more likely to be stolen – you will probably pay more to insure that car.
5. Driving Record: Your driving record lets the insurer know how much of a risk you are to insure. If you have caused a lot of accidents or have a lot of tickets on your record, you will pay more.
6. Marital Status: As crazy as it sounds, being married will lower your auto insurance rates. Statistics show that married drivers have a better driving record and are involved in fewer accidents.
7. Credit Score: Auto insurance companies see a statistical correlation between creditworthiness and the frequency of auto insurance claims. Insurers use this correlation as the reason for the practice of raising rates for drivers with bad credit.

If you have any questions about your auto insurance rates and coverage or would like a quote on a policy, contact the experts at Lenz-Balder today! We will help you find the best coverage and rates available and can help you take advantage of any discounts that you may be eligible for!