If you compare the auto insurance premiums of your family, friends, and co-workers, there’s a good chance you will find they vary from one person to the next. This is because the price of a policy is specifically related to how risky insurers perceive a driver to be. They take several factors into account to determine the probability of someone filing a claim. Here are some of the most common ones used to calculate coverage costs.

What Factors Affect How Much You Pay for Auto Insurance?

1. Driving Record 

Your driving history will have the biggest impact on your auto insurance premium. Insurers believe that poor driving behaviors result in expensive claims and set their prices accordingly. As a result, a clean record with no accidents or traffic citations will mean a more affordable rate. 

2. Location

Where you live also plays a significant role in how much you pay for auto insurance. If your home is in a highly populated area, the risk of collisions, theft, or vandalism naturally increases. Thus, you will be charged more for coverage than someone who lives in a rural region with little traffic and low crime rates.

3. Type of Vehicle 

The vehicle you drive will be factored into the calculation of your coverage costs based on characteristics such as the make and model, age, and safety rating. Cars that perform well during crash tests and are less expensive to repair or replace will be less to insure. Vehicles that are commonly stolen will have a higher insurance rate.

4. Coverage & Deductible 

Generally, the more protection you add to your policy, the more you can expect to pay. Additionally, the deductible you choose will impact your out-of-pocket costs for a claim and the price of your monthly premium payment. Higher deductibles equate to lower rates and vice versa.

5. Credit Score

Since an insurance company is essentially assuming liability on your behalf, they want to make sure you are responsible enough to pay your premium. Many providers believe a driver’s credit rating offers a good indication of their reliability and risk. The better your score is, the better your rate is likely to be.

Understanding what influences your auto insurance rates will give you some insight into how you can reduce your premium. Whether you’re shopping for a new policy or it’s time to renew an existing one, the professionals at Chanler Agency can help you find the best deal on coverage. As an independent agency, they have access to a number of top-tier insurers, which will allow you to get the protection you need at a competitive price. Since 1973, they have remained committed to providing Livingston County, NY, residents with personalized services and quality products. Call (585) 243-5520 to schedule an appointment, or visit them online to request a quote.