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March 18, 2015

What Determines Your Auto Insurance Rates

Man driving his car

How Auto Insurance Premiums are Determined

Do you know what makes up your auto insurance policy? Like all other insurance policies, how your car insurance rate is determined, depends on many different factors. Here are some of the most common factors that will help to determine just how much you will pay for your auto insurance.

  • Marital status/Age/Gender – young single males have to pay some of the highest auto insurance rates around, since they are considered to be high risk drivers. Married or older women will get to benefit from much lower premiums.
  • Claims and driving record – if your driving history is marked with tickets, or you have made multiple claims in the past, you will have to deal with higher rates.
  • Driving environment – the more you drive, and longer distances that you drive each day, the higher risk you are to your insurance company, meaning higher rates. You will also face higher rates if you are always driving at high risk times, such as rush hour.
  • Type of vehicle – if you drive a car that came with a high price tag, it will be much more expensive to fix if you ever file a claim. Typically, large vehicles are safer than smaller ones, leading to lower rates. Older cars will also lead to lower rates since they will be much less expensive to replace.
  • Credit score – your credit score is used to determine your rates. People who have a higher credit score are considered more responsible, which means that they will have lower premiums.
  • Coverage limits – the more coverage that you have, the better you will be protected while on the road. However, it will also lead to higher premiums.

For all of your auto insurance needs, contact Brewer-Lloyd Insurance Group in Mesa, Arizona. We will work with you to ensure that you have the right amount of protection, all at the right price for your budget.