It’s tricky to estimate your auto insurance rate without understanding the factors that can influence it. Every driver is different, but some basic characteristics may affect your insurance pricing. Below you’ll learn about some of the main factors that insurance agencies consider as they determine your auto insurance rates. 

Factors That Impact Your Auto Insurance Rate

1. Age

In general, drivers under the age of 25 will be more expensive to insure than older drivers. Younger drivers are more likely to get into wrecks, so insurance companies charge a higher rate to account for this risk. However, pricing can change over time since a senior driver is often riskier to insure than an average middle-aged driver. 

2. Address

Where you live can have a dramatic impact on your auto insurance rates. For example, drivers in southern states tend to pay more than drivers in other parts of the U.S., and city drivers often pay extra to insure against vandalism, theft, or other risks that come with living in urban areas. 

3. Credit Score 

Your credit score and history can have a significant impact on your auto insurance payment. Some states have insurance scores that are pulled from your credit report to determine your pricing. Paying your bills on time, avoiding large unpaid balances, and using credit responsibly will help you maintain a healthy credit score. 

​​​​​​​4. Driving Record

Insurance companies analyze your driving record to get a sense of your habits on the road. Unsurprisingly, rates are higher for drivers whose records contain auto accidents, tickets, and violations. Driving safely has multiple benefits, including serious savings on your auto insurance payments. 

​​​​​​​5. Car Type

Insurers often consider the make and model of your car while putting together your insurance quote. Sports cars usually cost more to insure because of their high price tag and speeding ticket potential. Generally, older cars cost less to insure than new ones, but this isn’t always the case since some older cars have a high replacement value and use parts that are hard to find on the market. 

Charles Adams Insurance Agency is an independent insurance agency that has served residents in Ashland, KY for more than 100 years. They work with a wide network of national insurers to help their clients achieve the best rates on auto, home, life, and commercial insurance. Visit their website to learn more about the insurance offerings or inquire by phone at (606) 325-9709.