Are you among the ranks of consumers who wonder exactly how auto insurance rates are calculated? Premiums vary from driver to driver based on specific factors an underwriter must consider. Western States Insurance Group provides quality products at the best possible price for your situation.  Below, their qualified agents outline the factors that go into deciding your car insurance premium.

How Is Auto Insurance Calculated?

Your Overall Profile

Insurance companies will first want to look at your general profile. This includes your sex, age, military history, education, and more. They do this to place you in a “pool” of drivers with a similar amount of risk. They wouldn’t, for instance, place a teenager with limited driving experience into the same pool as a 40-year-old woman with a clean driving record and no claims. Premiums tend to be higher as risk increases. Teenage and elderly drivers tend to have more expensive rates than other groups. Those with a higher education and military experience often have lower premiums or access to more incentives for maintaining a good record. 

The Car You Drive

Along with your car’s make and model, insurance companies rate vehicles according to safety ratings compiled by research companies like Consumer Reports. Additionally, if the car you own has security features, such as alarms and safety locks, you might qualify for a discount. On the opposite side of the spectrum, luxury vehicles that will be expensive to fix and flashy sports cars built for speed come with higher rates. 

Where You Live

Depending on where you live, the provider might simply charge higher insurance premiums. Larger metropolitan cities with many drivers mean you have more chances of getting into an accident, thereby increasing your probability of paying a higher rate. In addition, state laws might require minimum amounts of insurance, raising the amount you pay overall. 

Your Driving Record & Claim History

A driver with years of experience, no speeding tickets, and no claims will ultimately get a better insurance rate than one who has been deemed at fault for an accident or who has points on their record. It is in your best interest to always drive cautiously to avoid collisions or other incidents that will affect your record and, ultimately, the insurance rate you pay.

Are you considering purchasing auto insurance or reviewing your current policy? If so, speaking to a qualified agent at Western States Insurance Group will ensure you receive the best rates and most comprehensive coverage possible. They are known for providing business owners and those in need of personal insurance with a range of products. Call them today at (575) 396-1318, or visit their website for more information.