Every driver needs auto insurance to stay on the road, but not everyone pays the same amount of money for it. Do you want to save money on your insurance, and maintain your level of coverage? There are many factors dictating each person’s insurance quote. And you should understand how an agency determines that price.

Factors Deciding Auto Insurance Rates

1. Your Driving History

All insurance is essentially liability insurance, which means the agency is weighing how much of a risk it is to insure a driver. A person without tickets and accidents is deemed less risky. These people proved they are safe drivers; therefore they receive better rates.

2. The Vehicle’s Background

The insurance agent looks at what type of vehicle needs to be covered, which includes many different factors. Newer vehicles are more expensive upfront, so they cost more to repair. But they also have better security and safety features. An older car may not be as valuable, but it poses a higher risk if it’s unsafe to operate. Finally, the amount of usage the vehicle receives plays into it, and all of these things are combined to formulate the insurance quote.

3. Individual’s Personal Information

There are a few factors about your age, and lifestyle insurers look at, too. Younger drivers are charged more for auto insurance because statistics show they are more likely to get into an accident. And if you live in a higher-crime area, then they deduce you’re more likely to get vandalized. Finally, an excellent credit score closer to 700 or 800 will lower your quote rate. And what if you don’t have credit? You’ll pay 67% more for insurance.

 

Make sure you’re getting the best auto insurance rate by contacting the experts at Farmers Insurance – Andrew Chao in St. Louis, MO. As one of the area’s premier insurance providers, Andrew Chao has the knowledge needed to source the best insurance coverage for your comprehensive coverage. Schedule a consultation by calling (314) 300-7690 or request a quote online.