When it comes to determining which auto insurance to choose, premiums often factor in heavily. However, many consumers often get confused with how their auto insurance rates are calculated. Many don’t realize there are varying factors that play into what you ultimately end up paying. 

Which Factors Determine Your Auto Insurance Premiums?

1. Driving Record

Your driving record plays a major role in the amount of your insurance premiums. A driver with several accidents and points on their driving record will generally be a cause for higher premiums than someone with a clean record and a history of no insurance claims. You can sometimes get a discount if you attend defensive driving courses.

2. The Car You Drive

Insurance companies take on varying amounts of risk when they provide you with insurance. If you drive a more expensive car, your premiums will likely fluctuate, as the cost to replace it is high and there is a greater chance of theft. However, many insurance providers will offer discounts for cars with high-quality safety equipment. 

3. Age & Gender

Age and gender factor into your premiums, with younger men generally paying higher premiums. Statistically, teenagers and males get into more accidents than anyone else, so they will pay higher premiums.  

4. Type of Coverage You Need

Depending on where you live, you will be required to maintain state minimums of basic insurance. Most states have a minimum liability insurance requirement if you are at-fault in an accident. The higher these minimums, the more likely you will pay higher premiums. In addition, if you live in an urban environment, your rates will likely be higher, as the risk of accidents and theft increases.  

If you have questions regarding how to obtain the best auto insurance rates, it can help to speak with a qualified agency. The team at Kalita Agency in Watertown, CT, specializes in finding the best insurance packages for their clients. If you want to learn more about their services, call them today at (860) 274-8882 or visit their website.