As a driver, you have to have a certain level of auto insurance in place before getting behind the wheel. However, that doesn't mean that you should overpay for a policy. To save money on your coverage, learn more about some factors agencies use to calculate risks and rates.

How Are Auto Insurance Rates Determined?

1. Driving History

The more accidents you're involved in, the higher your insurance rate will be. Keep in mind that even minor fender benders can increase costs, whether they cause significant damage or not. Be a safe and conscientious driver to keep your insurance costs at a manageable level.

2. Where You Live

Some areas of the country are considered higher risk than others. For example, if you live in a neighborhood with high crime rates, your vehicle faces an increased chance of being stolen. As such, your insurance rate will be adjusted to reflect the added risk.

3. Type of Vehicle

Unsurprisingly, a fast sports car is associated with more risks than a family sedan. Additionally, your car's safety features can impact your insurance rates. If you're in the market for a new vehicle, look for something that offers enhanced safety to keep your coverage rates low.

4. How Much You Drive

The more you drive your vehicle, the more likely you are to be involved in an accident. That's why people who frequently drive, such as those who use cars to commute to work, may be privy to higher costs than those who only use their vehicles on a limited basis.

5. Age & Gender

Insurance is most expensive for young, new drivers, with costs leveling off as you get older and become more experienced. Additionally, men usually have higher rates than women when they're young, as they're considered more likely to engage in risky behavior. This reverses as you age, as women tend to have higher rates when they get older.

If you need a new auto insurance policy, contact the agents at IGO Insurance in Raleigh, NC. They’ve helped drivers throughout the state since 1970, and they have strong relationships with more than 15 carriers. They also take the time to explain their policies, so you know exactly what you’re getting. Schedule an appointment today by calling (919) 782-1560, or visit their website to get an auto insurance quote.