What Factors Impact Your Auto Insurance Costs? 

Auto insurance can be a necessary expense for drivers, but the cost of coverage varies dramatically based on personal and situational factors. Whether you’re shopping for a new policy or trying to lower your current premium, understanding what influences your auto insurance rates is essential.

How Much Is Auto Insurance?

The following are factors that may influence your auto insurance rates:

• Driving record—Maintaining a clean driving record without any accidents or traffic infractions often leads to more affordable insurance premiums. Conversely, a record of speeding tickets, DUIs or at-fault accidents can significantly increase your rates.

• Age—Insurance premiums tend to be higher for younger drivers, particularly teenagers, due to their limited driving experience and increased likelihood of being involved in accidents.

• Location—Where you live can affect your insurance costs. Living in a city with dense traffic and elevated crime rates typically results in higher insurance premiums compared to residing in more rural, low-traffic areas.

• Vehicle type—The make, model and year of your car can influence your rates. Insuring high-performance or luxury cars typically comes at a higher cost due to their expensive repair needs and increased risk of theft.

• Credit score—In many areas, insurers use credit-based insurance scores to assess risk. A higher credit score can lead to lower premiums.

• Coverage and deductibles—The more coverage you choose and the lower your deductible, the higher your premium will be. Balancing coverage with affordability is key.

• Annual mileage—The more you drive, the higher your risk of being in an accident. Drivers with lower annual mileage may qualify for discounts.

Learn More

For auto insurance near you, contact Price Insurance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.