Auto insurance companies have massive amounts of accident data, which they use to predict your likelihood of filing a claim. These calculations are extremely complex, incorporating factors from the neighborhood crime rate to your demographic information. Understanding how insurers calculate your rates can help lower your premiums.

5 Factors That Impact Auto Insurance Rates

1. Type of Vehicle

Some vehicles are safer than others, some are more likely to be involved in an accident, and some are more expensive to repair. If you drive an exotic sports car, you’ll most likely pay more for insurance than someone who has a sedan.

2. Driving Habits

The more time you spend behind the wheel, the higher chances you have of getting into an accident. If you have a long commute or drive long distances for work, expect to pay slightly more for auto insurance.

3. Personal History

Generally, insurance companies assume that drivers who’ve gotten speeding tickets or been involved in a crash in the past will be more likely to cause an accident in the future. While a single ticket may not cause your premiums to spike, a history of driving violations will drive your premiums up.

4. Location

Are vehicle thefts or break-ins a problem where you live, or does heavy traffic cause a lot of accidents? Insurance companies have detailed information about neighborhoods across the country, which they use to calculate their risk.

5. Age & Gender

Younger drivers cause a disproportionate number of auto accidents, due to their inexperience and tendency toward risky behavior. On average, men also cause more accidents than female drivers, so your insurance rates will reflect those statistics.

As a representative with one of the nation’s leading insurance carriers, Steven Hall - Farmers Insurance Group offers everything you need under one roof. We pride ourselves on giving clients throughout Mountain Grove, CA, the individual attention they deserve and finding auto insurance policies tailored to their needs. Visit our website or call (417) 926-7900 for a fast, free quote, and get more insurance tips on social media by liking our Facebook page.