Things That Affect Price of Auto Insurance
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- Your Driving History: If you have more tickets and are involved in more accidents, your rate will be higher. Based on statistics, drivers with no traffic violations and with fewer tickets pay less because they are considered to be lower risk. It is believed that they have a smaller chance of being involved in incidents, therefore, it is less expensive to insure those who are less of a risk.
- Your Vehicle: You will probably have to pay more if your car is going to be more expensive to be repaired, if it has a higher chance of being stolen, or if it likely to cause more damage to the other car if involved in an accident. Sports cars and SUVs tend to fall into this category, so they will be more to insure.
- Where You Live: Again, based on statistics, it shows that drivers who live in a smaller town pay a smaller amount of money to be insured. They argue that they will not get into as many accidents as those who live in a bigger city. If where you live experiences more theft, vandalism, natural disasters, or severe weather, you will pay more.
- Age: Drivers under the age of 25 typically pay more, and drivers aged 50-65 will pay less. Why? Drivers under the age of 25 have more accidents than drivers who are older and more experienced.
- Marital Status: Statistics show that married drivers have fewer accidents than single drivers. If you’re married then you’ll typically pay less for insurance. This particularly applies to younger drivers.
- Gender: Are you surprised? Gender inequality is a real thing, and the men are taking the loss this time. Men under the age of 25 are said to be more reckless than women under the age of 25, so they pay more. If you’re a young man, expect to have higher premiums.
- Financial Responsibility: Extensive industry analysis has shown that drivers with better credit history have better driving records. In states where insurance scoring is used, if you’ve got good credit, then you’ll generally pay less for auto insurance.
