Car insurance rates vary tremendously from person to person. The most important factor in these price differences is, of course, the vehicle itself. The newer and more expensive it is, the more it costs to insure. However, insurance providers consider many other factors, as well. Below are some of the most influential ones to keep in mind.

4 Factors That Determine Car Insurance Rates

1. Your Driving History

Your driving history tells insurers what they can expect from you in the future. That may not be fair, but it has proven an accurate gauge for the industry. The more moving violations and accidents you have on your record, the greater the perceived risk and the more you will pay for insurance.

2. Your Personal Characteristics

Insurers have found that men get into more accidents than women do, that singles are involved in more accidents than married people, and that teenage drivers are, as a group, the biggest risk of all. Therefore, if you’re a single male under age 20, you’ll pay more for auto insurance than a married female in her 30s, for instance.

3. The Miles You Drive

It makes sense that the more you drive, the more at risk you are for an accident. That’s why some providers offer low-mileage discounts for drivers whose annual mileage is minimal. Although it varies from company to company, the cap typically falls between 7,500 and 15,000 miles. Thus, if you put a lot of miles on your car each year — for instance, you have a long commute to work each day — you may pay a higher premium then a driver that falls within the low-mileage threshold. 

4. Your Credit Rating

Insurers have also found a correlation between responsible credit usage and safe driving. Therefore, they examine your credit rating when assigning risk and prices. The larger the number of late payments, charge-offs, and bankruptcies they see in your history, the more you’ll pay for car insurance.

To discuss your car insurance options with a friendly, experienced agent, contact A.W. Adams Insurance in Clayton, GA. They've been helping businesses and individuals throughout Rabun County design policies that fit their budget and needs since 1965. In addition to auto and motorcycle insurance, they also specialize in business, home, and life insurance. Visit their website to view location details or call (706) 782-5100 to request a quote today.