Minnesota – Factors that Affect Auto Insurance Rates


It is a fact of life that the more of a risk that you present to an insurance company the more you are going to pay for your coverage. But this is just one factor that car insurance companies take into consideration when determining your rates. Some things, like your driving record, are easy to figure out, but some things you may not have even considered are used to calculate your insurance rates. Check out these factors and see if any of them pertain to you and your family.

Your driving record is probably the biggest reason that you will pay more to insure your vehicle. Keeping your claims down can help bring down your costs. If you report every little thing, like a cracked windshield or a small ding in your fender, you may be covered now but you will be paying more in the long run.

If you get a traffic violation you may want to inquire about taking a defensive driving class to keep the points off your record. While it does cost to take the course, which is usually four to six hours, the cost of the extra points on your license could last up to three years.

Your age also plays a big part in how much you will pay for your coverage. Drivers between the ages of 16 and 23 represent the highest risk for insurers. Male drivers in this group are four times more likely to be in an accident and 16 year old drivers have the most fatalities from auto accidents in the United States. The next highest risk group is drivers over the age of 75. Safest drivers are in the 40 to 50 range.

Every 28.8 seconds someone steals an automobile making auto theft one of the top crimes in the country. Luckily Minnesota is not in the top 10 states for car theft but the type of car you have may be on the top vehicles that thieves like to steal. You may want to see if your car made the list and if you are car shopping you should definitely see if the one you are interested in buying is listed as well.

You may not have known this but insurance companies can use your credit score to determine your car insurance rates. Not all carriers do so check with your agent to see if they factor in your score to calculate your premiums. You should also check your credit report to make sure there are no errors on it. If there are, get them corrected. If you credit needs work, plan out a schedule for the next six months to pay your credit cards on time and you could turn things around.

One of the biggest mistakes you can make is letting your car insurance lapse. First of all it is against the law in every state to not carry the required amount of liability. But when you show a lapse in coverage you have upped your risk factor and not only will you pay more for your coverage you may have trouble finding a company to insure you.

Look over these factors and make any adjustments that you can and you may see a change in your rates. Try to drive less, install some safety features on your vehicle and clean up your credit, you may be able to shave a few bucks off your premium next time you renew your policy.