An auto insurance policy is essential to stay financially protected against at-fault accidents, loss, and theft of your vehicle. The cost of an auto insurance policy varies from provider to provider. Therefore, knowing what factors affects its rate and how to compare car insurance rates will help you make an informed decision.
Factors Affecting Your Auto Insurance Rate
- Driving Record
Having a clean driving record (without claims history, at-fault accidents, and traffic tickets) will help you save on your car insurance. However, if you are a new driver and have not had insurance before, you may have to pay more.
- Incident Record
Incidents such as DWI(driving while intoxicated or impaired), DUI (driving under the influence), and careless driving may impact your car insurance rates for 3-10 years. In such circumstances, you can switch providers to lower your rates.
Adult female drivers may have to pay more than male drivers. Contrarily, teenage males are considered more careless and may be charged higher than teen girls.
- Accident Record
Both at-fault and no-fault claims affect your car insurance rates but in different ways. One or more at-fault claims or violations on your driving record will likely increase your auto insurance rates for 1-3 years. To avoid this, it is better to pay small claims out of pocket.
Some insurance companies may offer accident forgiveness for 1 or 2 no-fault claims, keeping your rates intact. However, more than 2 no-fault claims will certainly increase your rates.
Teen drivers usually pay more for car insurance as they are less experienced and more likely to be involved in an accident. However, drivers aged 25-60 with a clean driving record may see a decrease in rates.
Where you live and park, your car may affect your premiums. Your premium may increase in Urban communities as they have higher rates of theft, accidents, and vandalism compared to rural areas. Parking your car in a closed garage will reduce the risk of theft and accidental damage, decreasing your premiums.
- Vehicle Type
Some cars cost more to insure due to expensive spare parts or lack of safety features. While you cannot do anything with the cost of your vehicle’s spare parts, you can add safety features, like a car alarm, to reduce the risk of accidents, thus reducing premiums.
- Credit Score
Having a poor credit score with a history of outstanding dues will increase your premium. Therefore, make payments on time and maintain a good credit score to save on your auto insurance.
How to Evaluate Auto Insurance Rates?
- Create a list of personal information affecting your auto insurance rates, such as your age, location, vehicle model, etc.
- Write down any questions/concerns you may have about auto insurance.
- Select the best-suited coverage options while staying within the minimum coverage limit set by your state.
- Get quotes from various insurance providers and compare them in terms of coverage benefits or limitations. You can then choose the provider offering the best comprehensive car insurance at cost-effective rates.
Protect Your Car with Advanced Insurance Group
Whether you need basic car insurance or additional endorsements for extended protection, we are always ready to customize your policy. Contact our team at Advanced Insurance Group today for more insights on auto insurance.