10 Factors That Affect The Cost Auto Insurance

​The cost of your Auto Insurance coverage depends on these risk factors. It is important to know about this as you shop around for new coverage and it might help you get started in working to lower your insurance rating.

​Geographical Location
Living and driving in a metro area makes your rates a bit higher compared to rural areas. It is because highly populated urban areas have a higher risk of congestion and accidents. They could also factor in the rate of stolen cars, car vandalism, insurance claims and damaging weather in your location. All of this will help determine the risks associated with insuring you and your car.

Age
Insurance companies typically give higher rates for younger less experienced drivers. But as you turn 25, the rates can drop up to 20 percent. They see driver ages 30-69 are in less risk. Although, they do also give elders higher rates as they’re age and slower reflexes make them prone to vehicular accidents.

Marital Status
Auto insurance rates can be 5 to 15 percent lower for married couples because of their marital status. Married couples are low-risk safer drivers. Plus, they can save money if they combine their policies and get a multi-car discount or bundle their home or renter insurance together with their auto insurance.

Driving Experience and Record
Inexperienced drivers have a higher risk, so the more experience you get, the more it is better for your application. Most importantly, clean driver’s history makes you qualify for better rates and discounts.

Claims Record
The higher the number of clams you had with your previous insurance, the higher your rates will be. At-fault claims can result in surcharge as well as higher payouts.

Credit History
The insurance company will determine your credibility in making on-time payments thru your credit history. If you are likely to miss a payment, they may ask you to pay a larger percentage of the policy up front.

Previous Insurance Coverage
Having continual auto insurance in your history can help you get a better rate. Having a lapse though will result in higher rates.

Type And Use Of Vehicle
They give different cars, different rates. Car models with a higher number of accident involvements would mean your rates would get higher. And also, cars used to commute to work or school pose a higher risk than personal vehicles.

Annual Mileage
Lower mileage equals lower risk and lower rates. Locale, traffic congestion, and population can also factor in the rate of risk in the area where you are driving.

Car Insurance Coverage
And lastly, the more types of coverage with higher limits you have, the more it will cost you as the insurer is agreeing to give you more coverage for the additional risks. Keep this in mind when you go out and shop for Auto Insurance. Although you can’t change some of these factors, keeping a clean driving record, good credit score, and choosing the right coverage can certainly help your risk rating.

Auto Insurance is what you need to get a peace of mind while you drive. Find the best source that you can trust. At Robert Nichols Insurance Group, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. To learn more about how we can help you, please contact our agency at (561) 406-6153 or Click Here to request a free quote.