Having a driver’s license provides you with the freedom to travel as you please. But before you can hit the road, you need to have a viable auto insurance policy in place. The amount you pay for this coverage will depend on a variety of factors, including the ones explored in this helpful guide.

What Affects Your Auto Insurance Premiums?

1. Driving History

Insurance companies use your past actions to try to predict your future ones. As such, if you’ve been involved in numerous collisions and had to file multiple claims in the past, insurers will assume you’re more likely to do the same in the future. To offset this risk, they’ll increase your premium. Conversely, if your record is free of any accidents or citations, insurers will offer a more favorable rate. 

2. Credit History

Certain states permit insurers to run credit checks on their customers. This is because studies have proven there’s a correlation between less-than-favorable credit scores and risky driving behavior. As such, if you have a credit score that’s lower than 600, your coverage may cost more.

In some cases, people with poor credit can end up paying nearly twice as much for their policy as someone with good credit. 

3. Age

Many insurance companies charge newer drivers higher premiums. This is because older drivers are more experienced behind the wheel and better equipped to handle the challenges of maneuvering a vehicle. Individuals typically see a decrease in their premiums once they turn 25.

If you want to learn more about your auto insurance coverage options, turn to the professionals at Aaron Insurance Agency in Dothan, AL. For over 20 years, their knowledgeable agents have provided residents throughout Houston County with motorcycle, car, and RV insurance. Visit their website or call (334) 712-0777 to request a quote and get started.