5 Important Factors that Affect Your Car Insurance Rates

factors affecting car insurance

5 Important Factors that Affect Your Car Insurance Rates

Auto insurance premiums are based on many different factors that involve both you and your vehicle. It can be confusing to figure out how much your premiums will be each month if you don’t understand what factors affect the same. Talking to an agent will give you a better idea of how your premiums are determined and what you can do to be eligible for potential discounts.

Here are a few important factors that may affect your car insurance rates.

  1. Your Age

Insurance companies base a large part of their decision concerning premiums on age. The younger the driver, the less experience they will have. Younger drivers are less likely to know how to handle an extreme situation.  On the other hand, as a person ages, their reaction times slow down. As a driver hits other milestones like getting married, earning a degree, living on their own, etc., their age will be less of a factor in how their premiums are figured.

  1. Your Driving Record

Your driving record is a huge determining factor when it comes to your monthly premiums. The more accidents and citations you have, the higher your monthly premiums will be. Taking a defensive drivers’ course online may be able to get you a small discount but being a more attentive and cautious driver is the best way to lower your risk and your monthly premiums. Many insurance companies offer small transponders that you can install in your vehicle. These monitor your driving habits and notify your insurance company of your driving techniques.

  1. Your Credit Scores

Most auto insurance companies consider your credit scores while determining your premium rates. In general, the lower your credit scores, the higher the premiums you will have to pay, regardless of your vehicle’s age.

  1. Your Residential Location

The majority of accidents occur close to home, which is why where you live matters. If you live in a densely populated locality, the chances of getting involved in an accident automatically increase. Similarly, some areas record higher instances of theft than others. Depending on the extent of these risk factors, your auto premium rates may increase or decrease accordingly.

  1. Your Profession

Based on your profession and the likelihood of getting involved in an accident while performing your duties, insurance companies may alter your auto premium rates. For instance, journalists and delivery drivers are frequently on the roads and are at greater risk of being involved in collisions, thus attracting higher premiums. On the other hand, nurses and paramedics are often considered more responsible drivers than the rest of the population, so they are usually charged more reasonable (lower) rates.

Several factors play a role in calculating your monthly auto insurance premiums. When you need helping to secure the right auto insurance for your budget, contact Kevin or Marci at Kevin S Dougherty Insurance. We offer unparalleled auto insurance in Illinois, Wisconsin, and Indiana.

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