Which Factors Affect Your Car Insurance Premiums?

Car Insurance Premiums Factors

It only takes a few details to skyrocket (or lower) your insurance premiums.

The cost of car insurance depends upon many personal details, including your age, where you live, the car you drive, your driving record, the coverage you select, and the amount of your deductible. Consequently, auto insurance premiums even for the same coverage will vary all over the map!

Check out these factors that influence how auto insurance premiums are set.

Use of Vehicle

Quite simply, if you drive less, you are going to pay less in premiums. This is because you are on the road less and have a lower chance of getting into an accident. If you commute to work, you are likely to drive in heavy traffic at rush hour – raising your chances of an accident.

Rating Territory

Ratings are higher in geographical areas where accident rates, the number of claims filed, and the average cost of claims paid are higher. Rates reflect auto repair costs, hospital expenses, theft, and vandalism in the area. Even if you have a spotless driving record and do not drive much, you are going to be charged the standard rate for the area where the automobile is garaged.

Driving Record

The driving records, traffic violations, and accidents of those insured and the people who live with them affect premium levels. More severe traffic convictions such as driving under the influence, leaving the scene of an accident, and more will result in higher premiums.

While you focus on bettering your driving habits to lower your premiums, allow the professionals to tend to your auto insurance needs. Visit Mayer Insurance for the right car insurance coverage in Apple Valley and neighboring cities in Minnesota.