What factors determine how much I will pay for auto insurance?

Thursday, May 28th, 2009

What factors determine how much I will pay for auto insurance?

Factors that determine the cost of your auto insurance policy

Some factors that will determine your auto insurance rates can include the following:

1. The amount of coverage. Obviously the more coverage you have, the more you pay. Do you need comprehensive coverage?

2. The deductible amount. The higher the deductible, the lower your premiums will be. If you do opt for a higher deductible, understand the risks involved there.

3. Your driving record. If you have multiple accidents or traffic violations, you will pay much more than if you have a clean driving record. Auto insurance companie will typically reward those deemed as safe drivers with lower rates.

4. Your credit. Many companies offer lower insurance premiums to policy holders with a good credit rating. Check your credit report for any errors or discrepancies.

5. Where you live. Auto insurance rates vary from state to state and even within states. Insurance providers have different premiums depending on where you live. They look at car theft, lawsuit and accident rates in the geographical area or zip code. They may also be able to lower your rate, if you car is parked in a enclosed garage or is equipped with an anti-theft device.

6. Your age. Teenagers and males below the age of 25 will normally have higher auto insurance rates that more experienced drivers.

7. The type of car you drive. Of course, if you have a higher limit to cover the cost of your more expensive car, then your car insurance rates will reflect that. But also, insurance companies consider the type of your car in relation to theft, safety and cost of repairs when determining the rate.




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