Auto insurance is a necessity when you own and drive a vehicle. However, there are factors that will affect your rates and increase your monthly payments. While some of these — such as age and gender — are beyond your control, you can influence others. Below are five considerations that will raise your auto insurance premiums and what you can do to keep costs down.

What Controllable Factors Affect Your Auto Insurance Rates?

1. Usage

How far and how often you drive both affect auto insurance, since being on the road more frequently raises collision and damage risk. The typical low-mileage threshold is no more than 10,000 miles annually. If you fall below this, your provider may provide a discount. Most insurance companies will also ask what the intended use of your vehicle is. Long-distance business travel will make rates go up, while limited local use will lower rates. Consider carpooling with coworkers or using public transportation if it's available.

2. Driving Record

The more collisions you’re involved in, the higher your rates will be. A good driving record is typically rewarded with lower premiums, and even if you’ve had a questionable past, a stretch of good driving will benefit you as long as you maintain it. Drive safely and keep a clean record by avoiding dangerous habits likes speeding or running red lights. 

3. Deductible Amount

Deductibles and monthly rates are closely connected. If you choose a lower deductible, you’ll pay a higher fee each month for coverage. Opting to pay more upfront will garner a lower premium, so consider choosing the highest deductible amount you can afford. 

4. Your Ride

The car itself may be a factor. Vehicles with high safety ratings like four-door sedans lead to discounts whereas coups and sports cars that are deemed less safe increase costs. Choose a car that is known to protect passengers and provides safety features like anti-lock brakes, lane-departure warning systems, collision-avoidance systems, and electronic stability control.

5. Credit History

Some states allow insurance companies to use credit history to determine rates, as studies have shown a correlation between low credit scores and greater risk on the road. If your credit score is lower than 600, you may notice a higher rate for your policy. Your rating may also influence how much you’re charged upfront for coverage. Check your credit scores regularly and keep your number up by paying down debt, paying credit card bills on time, and keeping credit utilization low. 

For help finding the most affordable auto insurance rates for your unique situation, trust America’s Favorite. With two locations in DeSoto, TX, and Pompano Beach, FL, this insurance agency will design a policy that fits your budget, and they’ll identify factors that can reduce your monthly premiums. Their friendly team also provides tax services, and will guide you from everything through tax planning to filing to ensure you don’t make any mistakes. Visit their website to learn more about these and other services, or call (972) 662-8221 to schedule an appointment today.