Like most drivers, if you’re shopping for auto insurance, securing budget-friendly coverage probably tops your priority list. As you compare quotes from different providers, know which factors go into setting the premiums you’ll pay each month or year. Here are several common ones that help drive car insurance rates.

What Influences Your Auto Insurance Rates? 

1. Driving Record

Maintaining a driving record free of tickets and other traffic infractions will work in your favor when it comes to securing auto insurance. The better your driving habits, the more likely you are to have lower rates. If you do have a less-than-stellar record, depending on the offense, it may take a few years for infractions to disappear. Make an effort to obey traffic laws and avoid accidents to minimize the chance of increasing your premiums. 

2. Residence Location

Unfortunately, accidents are more likely to occur in cities and other areas with more people and drivers. Incidents of theft and vandalism are also more common. If you live in a heavily-populated community, your auto insurance rates may be higher compared to rural or smaller towns, where accidents might not be as prevalent. 

3. Age

New and younger drivers will typically have less driving experience and are more prone to getting in accidents. As a result, these demographics may pay higher auto insurance rates. On the other end of the spectrum, drivers in their 70s could also see an increase in their premiums. Insurance companies track historical data and find that older people may have slower reflexes, which can lead to accidents. 

4. Type of Vehicle

Sports cars and other high-performance vehicles may cost more to insure, given their propensity for speed. Driving at high speeds is one of the leading causes of accidents. If you have a new vehicle, the coverage could be higher than a used one because it costs more to replace a later model if it’s totaled. Auto insurance providers also review a car’s safety rating to determine fees. 

5. Commuting Distance

The distance you drive to work and around town may also influence what you pay. The more miles you drive, the greater your chance of getting in an accident. Some auto insurance providers now have devices and apps to track how far drivers commute. In contrast, if your trips are shorter distances, your coverage rates may be lower. 

Since 1969, Stidham Insurance Agency in Dumas, TX, has helped drivers throughout Moore County and the Texas panhandle by providing affordable and reliable coverage for vehicles. The independent firm has the distinction of partnering with several leading auto insurance providers to bring you customized protection. Also, the team of licensed and professional agents offers products that others may not, such as crop and agriculture insurance. For a car insurance quote, call (806) 935-6888 or request one online.