Auto insurance rates vary for reasons beyond the different carriers. Pricing isn’t random, however, and monthly premiums can be predicted through a variety of factors. Knowing what can affect your insurance rates can help you keep costs down while you enjoy the open road.

What Factors Affect Your Auto Insurance Rates?

Personal Characteristics

Factors that influence car insurance rates include gender, age, marital status, and education. If you are 25 or younger, your rates will be higher because you have fewer years of experience behind the wheel.

States also typically create different rates for men and women, such as higher rates for older women and lower prices for younger men. Insurance rates are lower for married people over single and divorced individuals. Also, those who’ve graduated from college pay less because educated people are believed to experience fewer auto accidents.

Location

If you live in a high-traffic, urban city, your insurance will be more expensive because your accident risk is higher than those who live in rural areas. The number of vehicle thefts and vandalism your neighborhood experiences influences your rate as well.

Driving Habits & Type of Vehicle

If your job requires you to be on the road daily, your monthly premiums will increase. The type of car you drive also contributes to rate results. For example, if you drive a bigger vehicle with a high safety rating, you will enjoy a lower premium. Also, if you have an excellent driving history free of accidents, speeding tickets, or DUIs, your rates will be lower than those who drive recklessly.

How To Keep Your Rates Low

While some auto insurance rate factors are beyond your control, there are still many ways to keep your premiums reasonable. Practice safe driving to enjoy a clean record. Also, take steps to improve your credit score by paying bills on time and paying more than the minimum amount for credit card payments.

Consider purchasing a new vehicle since carriers consider older cars as a risk. If you live in a high-traffic area with serious crime rates, you may want to move before inquiring about insurance. Also, look for an agency that offers low mileage discounts. Some agencies provide price reductions if you take driver safety courses or own multiple vehicles.

Auto insurance is among the many services of Barry Insurance, the carrier serving clients throughout Texarkana, TX, and the surrounding areas since 1962. The friendly and knowledgeable agents work with Travelers®, Progressive®, and Safeco® to keep rates reasonable. Call (903) 831-3493 for a free quote.