The cost of auto insurance can vary considerably from person to person. There are a number of factors that affect rates, which many drivers may be unaware of. If you have ever wondered how your insurer sets car insurance premiums, below are some of the most important factors that could affect yours.

5 Factors That Influence Auto Insurance Rates

1. Personal Demographics

Insurers have found that women, married people, and drivers over age 25 are better insurance risks than men, singles, and younger drivers. Because of claims statistics, if you are a single, teenage male, you will likely pay more than most other drivers.

2. Your Car

Newer, more expensive vehicles cost more to repair and replace than do older, less luxurious models. Therefore, your insurer undertakes a larger risk insuring newer luxury vehicles and sports cars. The older your car and the more basic the make and model, the less your insurance premiums generally cost.

3. Your Driving Record

If you have not had any accidents or received any tickets for a few years, you may qualify for a safe driver discount. However, if your record is riddled with citations and collisions, your insurer may charge more for the higher risk involved with insuring you.

4. Your Credit Rating

People who handle their finances responsibly tend to also behave responsibly behind the wheel. Insurers like to see this and may lower rates accordingly. However, if you have a lower credit rating, you will likely have to pay more for your auto insurance.

5. How Much You Drive

The more miles you drive per year, the more risk you face on the road. Therefore, if you drive only a few miles per week, your rates may reflect the lowered risk. If you drive a lot, you may pay more.

For expert guidance selecting an auto insurance policy, contact Farmers Insurance: Daniel Oliver in Edina, MN. He has more than 30 years of industry experience and serves clients in and around Hennepin County and the Twin Cities region. His office specializes in auto, home, life, and business insurance. Visit his website or call (952) 925-4454 to request a quote.