The Importance of Insurance

7 Factors That Affect Your Auto Insurance Rates

12 October 2020

Katrina Terry

Purchasing an auto insurance policy is something every driver must do if they want to follow the law, but did you know that all drivers pay different rates? The rates you pay for auto coverage depend on many things, and here are seven factors that affect auto insurance premiums.

1. Your Age

The first thing that affects your rates is your age. People who are younger than 25 typically pay the highest rates. People who are over 60 or 65 might also pay higher rates. If you are somewhere in between, you might pay less for your insurance.

2. Your Gender

The next thing that affects your rates is your gender. Male drivers may have higher risks of causing accidents and getting tickets. As a result, young male drivers typically pay higher rates than a female driver.

3. Your Marital Status

Did you know that your marital status plays a role in your rates? If you are married, insurance companies consider you a safer driver than single people. As a result, you will pay less if you are married rather than if you are single.

4. Your Vehicle

The type, age, model, and make of your vehicle also affect your rates. Your insurance agent will ask you questions about your vehicle to find out these details. Your rates will depend on the value of your vehicle and the safety ratings. You will pay more for a more valuable car, and you will pay less for a vehicle with excellent safety ratings.

5. Your Driving Record

Your insurance agent will also look up your driving record to see your risk level. If your record is spotless, it means you are a safe driver and will pay lower rates. If your record contains tickets and claims, you will probably pay more for your coverage. Drivers with claims on their records have a higher risk of causing more accidents, so they pay higher rates.  

6. Your Location

Where you live also affects your risk level. Therefore, you will pay less if you live in a safe area with a low record of claims.

7. Your Coverage Types

Finally, the coverage types you add to your auto policy affect your rates. You will pay higher rates for higher levels of coverage. You will pay less if you buy a liability-only policy.

These seven factors will affect your auto insurance rates, but these are not the only ones. Your agent might factor in many other things when offering you a quote for auto insurance coverage. Contact an insurance service, such as The Policy Center, for more information. 

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