Utah – Factors that Affect Auto Insurance Rates


When it comes to determining your car insurance rates, you may be surprised to learn what factors the insurance companies use to rate your premiums. Many are just common sense, but others are things you may never have even thought of. Check with your insurance carrier in Utah regarding the following factors to see what factors your company uses in pricing your premiums.

Your driving record is probably the most significant factor in determining your insurance rates. The first question that your insurance agent is going to ask you is have you had any accidents or tickets in the past three years. Usually accidents and traffic violations will stay on your driving record for up to three years.

An insurance company will look at your driving history to see how many  accidents you have been involved in, the number of claims you have submitted, no matter how big or small, and if you have any traffic violations. Just one accident could cost you increased premiums for up to three years. Check to see if your insurance carrier has a first time forgiveness policy. Some companies will not raise your premiums if it is your first accident and you have had a clean record in the past.

The riskiest age group amongst drivers across the country is male driver between the ages of 16 and 23. This group will pay the highest rates for their car insurance. These young males have a four times higher fatality rate than any other drivers on the road. If you are in that age group and get married, your rates will start to go down. The next riskiest group are older drivers, especially 75 years and older.

Every year a list comes out with the top 10 cars that thieves love to steal. You may want to check to see if your car made the list, and you definitely should think again if you are looking to buy one that is already on the list. Many of the cars are older and they steal them for parts, some are just easy to steal. But there are newer cars on the list, so make sure you know the models next time you go car shopping.

As if paying your bills on time wasn’t hard enough these days, your credit score is a big factor in determining how much your insurance company is going to charge you. If your credit score is good, you’re safe. If you are having financial problems, check your credit score and see if there are any errors on it. If there aren’t then set up a plan to pay your bills on time and your score could improve in as little as six months time.

One of the biggest mistakes you can make is letting your car insurance lapse. If you are changing insurance companies make sure that you notify your existing company to let them know so that they do not cancel your policy. A lapse in coverage will follow you for years in increased premiums. You may even have trouble finding an insurance company who will accept you.

The amount of time you are on the road also affects how much your premiums are. If you are on the road commuting to work two hours a day you are going to pay more to insure your car than someone who works from home and uses their vehicle mostly for leisure. That’s why some companies give discounts to retirees.