5 Factors That Affect Your Auto Insurance Rates

As a responsible driver, you recognize the importance of having sufficient auto coverage. However, that does not mean you love paying high prices for your monthly premiums. Before you can lower your premiums, you have to figure out what is causing them to rise in the first place.

Here are a few factors that can affect your auto insurance policy rates.

Driving History

Before determining your insurance rates, an insurance company will carefully inspect your driving history. They believe your driving history will predict your future performance on the road. For example, if you have multiple speeding tickets on your record, your insurance company may charge you higher rates.

If you want to lower your premiums, consider taking a defensive driving course.

Yearly Miles

The number of miles you drive every year can also affect your insurance rates. Generally, the less often you drive, the less likely you are to get into an accident. If you do not drive very often, you should ask your insurance company if you qualify for a low-mileage discount.

Credit Score

Your credit rating does not just affect your ability to get loans. It can also affect your auto insurance rates. Since people with lower credit scores are statistically more likely to file claims, insurance companies tend to charge them higher auto insurance rates. 

If you work to improve your credit score, you may see a decrease in your auto insurance rates in the future.

Vehicle Type

Before you decide the type of car you want to purchase, consider how it might affect your insurance rates. For instance, that sports car may be fun to drive around in, but you can expect to pay a very high insurance rate for it. If you pick a more practical vehicle, on the other hand, you will pay less in premiums.

Age

Insurance companies also consider a person's age before deciding what to charge them for premiums. Teenagers, for example, will get charged higher premiums because they're inexperienced and more likely to get into accidents than drivers with more experience.

Senior citizens also get charged higher premiums. They tend to have worse vision and cognitive abilities than their younger counterparts, so they get into more accidents.

As you can see, there are a lot of factors that can impact your auto insurance rates. If you have questions about how to lower your premiums, you should get in touch with your auto insurance agent.

About Me

The Principles Of Pet Insurance

Hello, my name is Bobby Parker and this is my blog about pet insurance. My wife and I have four dogs and we consider these animals our children. Whenever one of them gets sick or is not feeling well, we always take them to the veterinarian for care and treatment. Since surgery and other veterinary procedures can be expensive, my wife and I decided to purchase pet insurance. Before we bought the policy, I did a lot of research about pet insurance and I discussed the different kinds of policies that are available with my insurance agent. By doing this, we were able to get the type of insurance coverage we needed for our pets. Since I know how important animals are in the lives of many people, I wanted to write this blog to share the information I learned about pet insurance.

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