Call Us 501-225-3454
☰ ˟
Logo
Make A Payment
501-225-3454
  • About Us
    • About Us
    • Testimonials
  • Meet the Team
  • Locations
  • Services
    • Make A Payment
    • Request A Quote
    • Claims Management
    • Travel
  • Contact
Home > Blog > 4 Factors That Determine Your Auto Insurance Rates
TUESDAY, APRIL 26, 2022

4 Factors That Determine Your Auto Insurance Rates

Ever wonder how insurance companies determine the rates for your auto insurance? Although algorithms and other mathematical computations generally aren’t made publicly available, you can effectively estimate factors that determine your rate by understanding risks, which will help you lower the cost of your car insurance. The following four factors allow insurance companies to determine the risk you present, whether low or high. 

 

Driving History 
 
As the old saying goes, “past behaviors are a great predictor of future behaviors,” and most insurance companies agree. Using your driving history, insurance companies determine whether you are a potential risk, one that will result in a financial loss. If you are, then the cost to provide you with insurance will be higher. Individuals with a safe driving record pay less for their insurance since they have proven low-risk driving behaviors.  

Pro Tip: Taking a driver’s education or safety course can help you save money by helping you improve your driving skills.a blue car parked in a parking lot 

 

Age 
 
Younger individuals will typically be considered a higher risk for insurance companies, primarily because they have little experience driving. As they age and gain more experience driving, their insurance costs can decrease. For most people, the magic age that results in a decrease in insurance costs is 25.  

Pro Tip: For new, inexperienced drivers, reducing other risks can help you save money until you reach driving maturity, which often reduces your car insurance rates. 

 

Credit Rating 
 
Used by many companies to glean insight as to who you are, your credit rating helps insurance companies determine whether you will be a financial risk to them. Typically, individuals with lower credit ratings take risks in life, which may ultimately affect driving decisions they make while behind the wheel.  

Pro Tip: Improving your credit rating by paying your bills on time can help you reduce the amount you pay for car insurance each month. 

 

Where You Live 
 
Living in neighborhoods with higher crime rates can increase the premium you pay for auto insurance. Since auto theft tends to happen more often in these neighborhoods, the possibility of your car being stolen or vandalized factors into an increased rate for your auto insurance.  

Pro Tip: Protect your car by storing it in a garage or using anti-theft devices to secure your car when it is not in use. 

 

Although you cannot change what factors insurance companies use to determine your insurance rates, you can improve how they see you by lowering your insurance risks.  

Posted 4:36 PM

Tags: auto, car, insurance, coverage, accident
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022

  • coverage(10)
  • insurance(10)
  • policy(6)
  • homeowners(3)
  • commercial(3)
  • compensation(2)
  • workers(2)
  • business(2)
  • small(2)
  • watercraft(2)
  • boat(2)
  • accident(1)
  • life(1)
  • property(1)
  • travel(1)
  • vacation(1)
  • auto(1)
  • retirement(1)
  • car(1)
  • vehicle(1)
  • whole(1)
  • rv(1)
  • recreational(1)
  • terms(1)

View Mobile Version

Resources

  • Products
  • Blogs
  • Our Carriers
  • Report A Claim
  • Make A Payment

Main Locations

10800 Financial Centre Pkwy, Suite 300
Little Rock, AR 72211

Ph: 501-225-3454 | Fx: 501-225-4925
2479 Browns Lane
Jonesboro, AR 72401

Ph: 870-932-7448 | Fx: 870-932-7415
© Copyright. All rights reserved. | Powered by Insurance Website Builder

Medicare Disclaimer : “We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.”