What’s Driving Your Auto Insurance Quote?
Auto insurance is a necessity of life. Everyone who owns a vehicle is legally responsible for making sure they are covered. Getting quality auto insurance requires that you weigh the benefits afforded to you by your insurance company and the factors that affect your insurance rates. While most people assume your previous driving record will weigh heavily in your insurance options, there are other important factors an insurance agent will consider. In some cases, you can make adjustments to reduce your risk in the eyes of the insurance company. In other cases, your rates are arrived upon by factors you will not be able to easily affect. In order to get the best auto insurance rates possible, consider all of the factors that go into determining your auto insurance rates.
Your Age
Younger drivers are considered to be of greater risk to insurance companies. The age factor is backed by research that indicates heavily that younger drivers are more often involved in accidents and have a relative propensity toward circumstances that result in an insurance claim. Those drivers under the age of 18 are particularly risky for insurance companies, thus the cost to insure a vehicle that will be even part of the time driven by a minor is generally more expensive than an insurance policy for a more mature driver.
A minor driver with an individual insurance policy will cost far more on average than adding the teen to your insurance policy.
Driving Record
Your driving record is one crucial way an insurance company assesses the risk of your policy. Those drivers with a substantial driving history devoid of accidents and driving violations will generally be able to secure a cheaper insurance policy than a driver with a more colorful history.
Inclusions in your driving record that affect your insurance quote includes:
- Moving violations cited by law enforcement including Driving Under the Influence or Driving While Intoxicated citations and/or convictions.
- Moving violations including reckless driving, speeding, tailgating, failing to observe traffic signs or other posted regulations, and more.
- Collisions to include those involving another vehicle, a structure or a person.
- Completion of driving instruction from a reputable road safety school or program.
Type of Vehicle
The type of vehicle you drive has an effect on your auto insurance quote. While the value of your vehicle plays a part in determining the rate — as it would when insuring anything of value — the type of vehicle is used to determine risk. Sports cars are generally more expensive to insure than family vehicle. The automotive attributes of your vehicle may be used to classify your car in a category you might not expect. For example: a vehicle with a turbo-charged V-8 engine, even disguised as a family station wagon, can cost more to insure than a more sporty vehicle with a standard 4-cylinder, naturally aspirated engine.
The Type of Coverage you Choose
Your auto insurance coverage can be established to cover the minimum coverage required by law or be a more comprehensive policy. The depth of your coverage will play a role in determining the cost of your quote. Those drivers seeking minimum coverage will generally be required to pay less for insurance. Covering more, such as other insured drivers, or “full” coverage, will raise the cost of your insurance policy rates.
Your deductible will also factor in your rates depending on the coverage you choose. A deductible is the amount that would need to be surpassed before the insurance company will be called to contribute to repair or replacement of your vehicle. If you have a $0 deductible, you can expect to generally pay more for your insurance than a driver with a $500 or $1,000 deductible.
Your Location
Where you live plays a role in the rates of your insurance policy by factoring in the local crime rates and amount of traffic. Those drivers who live in areas of heavier crime will generally pay more than a driver who lives in a relatively statistically safer location. Whether you have a driveway, garage or on-street parking can also affect the rate of your insurance policy.
Credit History
Your credit history is used to determine a great deal in terms of borrowing money or receiving an extension of credit. Credit history also factors into your insurance quote. Drivers with a stellar credit history can expect to have options for auto insurance that are less expensive than those with poor credit.
Discounts
There are several discounts available for certain conditions of your policy. An example of discounts that may be offered include drivers who exhibit safe driving standards, younger drivers who carry exemplary academic standing, drivers willing to use vehicle monitoring devices that measure and report the driving habits of the policyholder, and even drivers who are employed in certain occupational professions.
The types of discounts available and the standards to qualify vary among insurance companies. Do not expect each insurance agent to forecast all of the discounts for which you may qualify. Ask your agent for factors that could afford you a discount when deciding which company and policy is best for you.
