When signing up for auto insurance, the company you work with will look at numerous factors to determine your rate. Some of these factors, like driving history, will relate to you personally. Others, such as where you live, are outside your control. Knowing how costs are determined can help keep the price of insurance manageable, however. 

Which Factors Impact the Cost of Auto Insurance?

1. The Type of Car You Own

Calculating insurance costs is all about weighing risks. Drivers who own safe, reliable vehicles are considered lower risk, and their insurance rates reflect that. Conversely, drivers who own sports cars that can achieve high speeds are naturally considered a higher risk to insure. 

2. The Amount of Your Deductible

Your deductible is the amount of money you’re obligated to pay before your insurance company will compensate you for damage. The higher your deductible, the lower your monthly premiums will be. However, you must make sure that you have enough money set aside to cover your deductible in the event you’re involved in an accident. 

3. How Long You’ve Been Driving

There’s a reason why new drivers are subject to the highest insurance rates. This is because they’re the most inexperienced, which means they have the highest chance of being involved in an accident. While there is no specific time when insurance companies offer rate reductions, rates tend to decrease by about age 25. Rates should stay reasonable until you reach your 60s, provided you maintain a good driving record. 

4. How Much You Drive

It stands to reason that a person who’s on the road more will have a greater chance of accidents. Accordingly, a person with a longer commute to work or one who drives on a more frequent basis will probably have a higher insurance rate than someone who spends less time on the road. 

Drivers in Ashtabula, OH turn to Pooja Kuhn - State Farm Agent when seeking reliable, affordable auto insurance. If you have a teen driver in the family, ask about the good-student discount. And drivers with clean, accident-free records are also privy to additional discounts, so you can rest assured of manageable insurance prices. Call (440) 964-3276 today to get started on a quote or visit her online for more great car insurance tips.