Most important factors affecting auto insurance rates


The auto insurance rates that you pay vary from one state to another. The auto insurance rates vary from one person to another. The auto insurance rates vary from one vehicle to another for the same person. This is because there are many things taken into consideration by an auto insurance provider before they deduce what the premium should be for the required coverage in case of a customer. In order to save on your auto insurance, as well as to make a good decision on which insurance provider to go with, it is important that you find out what these factors are.

The nature of the vehicle

It is a very important factor in determining your auto insurance rates. SUVs and vintage vehicles usually cost a lot more to repair than normal sedans. Obviously, the premiums you have to pay for the coverage will also be higher. Moreover, in case of SUVs, the chances of your speeding and getting involved in accidents are high too, which leaves you with a greater premium to pay. Mid-size family sedans are usually the most economical when it comes to insurance rates as they are safer while driving and not expensive to repair.

Overall driving record

A lot about your driving affects your auto insurance rates. If you love driving and drive a lot, your mileage will go up. Insurance providers see this as a potential risk, as the more you drive, greater are your chances of being involved in an accident and claiming for insurance. Therefore, the premium can go up. Similarly, if the driving record shows violations like speeding tickets and jumping signals, you come out as a reckless person whose premiums will be higher to cover for the risk of frequent claims. Lastly, if there are serious offences like accidents, driving under influence, etc. getting cheaper auto insurance could turn out to be an ordeal.

Your profession, age and gender

A housewife or a retired senior citizen will get auto insurance for far less than a middle aged professional who commutes to work daily. The reasons are very obvious. Men who drive to work often are vulnerable to more accidents than those at home. The premium is always directly proportional to the risk you pose to the auto insurance provider.

State you reside

This could be totally out of your control. Nevertheless it is a very big factor in determining your auto insurance. If the state is known for bad weather, bad roads, high traffic and frequent accidents, the average auto insurance premium will be on the higher side. Traffic laws tend to be more stringent as well in some states as compared to others.

Your profile

Things like your credit history and college grades can greatly influence your insurance premium. This is because if your credit score is high it indicates that you are more responsible. So, indirectly, the chances of your being involved in an accident also tend to be lower. The same logic applies for students with better grades at college.