Everybody pays different amounts for car insurance according to their risk profile and the provider’s proprietary formulas. While there are some factors you can’t control, there are certain facets that are within your power to change. Use the list below to understand what steps you can take to keep your coverage affordable. 

What Impacts Your Auto Insurance Rates

1. Car Specifications 

The most important determinants of rates are the make, model, and year of the car you drive. The newer and more expensive it is, the more it costs to repair or replace, and the riskier it is for the company to cover. Faster cars are also generally pricier to insure. A sleek and stylish roadster will generally cost more to insure than an average mid-size sedan. 

2. Age, Sex & Marital Status

It seems unfair, but insurers have found that men, singles, and teenagers pose higher risks behind the wheel. Because they’re statistically more likely to file a car insurance claim, they’re charged more for coverage than women, married couples, and drivers over age 25.

3. Driving Habits

The more you drive, the more likely you are to need to file a car insurance claim. Therefore, insurers consider the number of miles you put on a car each year when setting premiums.

4. Driving History

If you have a history of moving violations and accidents, you’ll pay more for coverage than if you had a clean record. Certain violations, such as reckless driving and driving under the influence, can result in especially dramatic price increases. You could pay double or triple what someone with a clean record pays.

5. Credit Score

Insurers have found a correlation between responsible credit use and safe driving habits. Therefore, you can often lower your insurance costs by working to improve your credit rating. Pay bills on time and avoid charge-offs to keep your score in tip-top shape. 

To see if you can save money on car insurance or improve your coverage at no extra cost, contact Goggans Insurance in Scottsboro, AL. For your convenience, they also maintain five other locations throughout the state. They've been serving the region for more than 30 years. In addition to car and motorcycle insurance, they carry home, boat, RV, farm, and business insurance. Visit their website to view location details and office hours or call (256) 574-3440 to request a quote.