Understanding your auto insurance rates
Have you ever wondered why your friend pays significantly less than you do for auto insurance? There could be a very good explanation. Several key factors are used to determine how much you pay for auto insurance. According to the Insurance Information Institute, the average American driver spends about $850 annually on auto insurance. Your coverage could be higher or lower, depending on any of the following:
• Age: Anyone with a teenage driver knows that younger, less-experienced drivers pay more for auto insurance. Statistically, mature drivers have fewer accidents than those under the age of 25.
• Location: Many insurance companies research the number of accidents, car thefts, cost of medical care, etc., for various regions and use that information to determine liability. • Credit: Your credit score is a primary tool insurance companies use to establish whether you are an insurance risk. Typically, those individuals with low credit scores are more likely to file a claim, or allow their insurance coverage to lapse.
• Driving Record: Always try to maintain a clean driving record. This includes avoiding accidents and traffic citations. The better your driving record – the lower your rate.
• Car: A luxury vehicle costs much more to insure than an older sedan. Insurers consider the cost of replacement and repairs, as well as the likelihood of theft to arrive at an annual premium.
These are just a few of the areas insurers consider when customizing an auto insurance policy. If you would like to make certain you are getting optimum coverage at the best possible price, call your independent, Trusted Choice insurance agent.