The price of automobile insurance varies from one person to the next. Insurers carefully evaluate several variables to determine each driver’s policy premium based on their level of risk. While some factors are out of your control, you can adjust others to secure a lower price without sacrificing the quality of the coverage. Here are some of the elements that affect insurance costs.

What Influences the Price You Pay for Automobile Insurance?

1. Driving Record 

Driving history generally has the most influence over policy premiums. If you’ve received any traffic tickets or have an at-fault accident on your record, you can expect to pay more than someone with a clean record. Moving violations and accidents are considered high-risk behaviors that are likely to result in a claim.

2. Demographics 

Age, gender, marital status, and location are all factors insurers take into account. Younger drivers with less experience are usually rated higher than older drivers because there’s a greater chance of them getting into an accident. Males, single drivers, and those living in areas prone to crime also tend to pay more for automobile insurance.  

3. Credit Score 

It has become increasingly common for automobile insurance companies to assess a driver’s credit score when calculating their coverage costs. Typically, higher scores are associated with lower risks, and vice versa. Thus, if your credit is in good shape, you can be rewarded with a lower rate. 

Whether you’re purchasing automobile insurance for the first time or looking to find a better rate than you currently have, Mid-Alliance Insurance Associates can help. As an independent agency serving Southeast Nebraska, they can provide access to products from multiple carriers and assist you in comparing rates to ensure you get the best deal available. Offering decades of industry experience, they’ve worked with many Lincoln residents to customize policies for maximum protection. Call (402) 421-7800 to request a quote, or visit them online for more information on what they do.