Car insurance is designed to protect you from the financial losses that can result from an auto accident. Gaining this protection requires you to pay your provider a premium, but this rate can vary considerably depending on the overall risk you present as a policyholder. If you’re searching for affordable car insurance, here are seven major factors that can influence your rate.

7 Factors That Influence Auto Insurance Premiums

1. Policy Type

The bare minimum liability insurance that’s required by law will usually come with the lowest rates. Additional protection such as collision and comprehensive coverage will reduce your risk of financial losses but will also carry a higher premium.   

2. Driving Record

Your history as a driver will greatly impact your rate. For example, having several points on your license due to speeding or a DUI will likely make you a high-risk driver and boost your required premium. Having a history of auto accidents can also increase your rate.

3. Age

Due to their lack of experience, younger drivers are generally considered to present a greater risk than older motorists. As such, teens tend to have higher rates than adults. There may be some savings, however, by joining their parents’ existing car insurance policy.

4. Location  

Where you live and drive can influence your overall risk. For example, people who commute in metropolitan areas tend to have higher premiums than rural drivers, because they face higher traffic rates.

5. Deductible

A deductible refers to how much you must pay before you receive an insurance benefit on a claim. Having a higher deductible can lower your premium, but it will ultimately require you to pay more if you get in an accident and need benefits.

6. Average Commute

The more time you spend in your car, the more likely you are to get in an auto collision. As such, daily drivers that cover long distances will usually have higher premiums than those who only get behind-the-wheel a few times a week or drive fewer miles to work or school.

7. Vehicle Type

If you have collision or comprehensive insurance, your vehicle will be protected against a variety of damages. Luxury or high performance cars can increase premiums because these models usually have higher repair costs than standard economy vehicles.

While many factors can influence your auto policy premiums, Zimmerman Insurance Agency is here to help you discover solutions that can help you save. Offering coverage from many different providers, this High Point, NC car insurance broker will introduce you to a variety of plans that optimize coverage while keeping rates affordable. This experienced team will also highlight opportunities that can reduce your premium—such as discounts for being a good driver or bundling with a homeowner's insurance policy. Learn more about these services online or by calling a friendly agent at (336) 883-6512.