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Auto insurance companies weigh a variety of factors when calculating your premiums, some of which are totally outside your control. While you can’t do much about your age or local crime rates, understanding how insurers calculate premiums can help lower them without sacrificing coverage. Below are a few of the primary factors that affect your insurance costs.

What Aspects Influence Auto Insurance Costs?

1. Your Driving Record

Insurance companies generally assume that a driver with a history of speeding tickets is more likely to cause an accident, which translates into higher coverage costs. Obeying the rules of the road and avoiding tickets not only decreases the risk of a crash, but it can also save hundreds on your insurance premiums. If you already have tickets on your record, your insurer may give you a discount for completing an approved safe driver course.

2. The Car You Drive

auto insuranceEvery insurance company collects massive amounts of data on each make and model of vehicle, including the crash safety rating and average cost of repairs.

Getting an auto insurance quote before buying a new car will give you the information to make the best decision. Fortunately, coverage costs can vary from one manufacturer to the next, so another company may offer a similar model with lower insurance costs.

3. Your Credit Rating

It may seem unfair, but insurance companies have found a link between a driver’s credit rating and how likely they are to file a claim. Paying down debts and making payments on time may result in lower insurance costs, as well as better interest rates on auto loans and credit cards.

 

Since 1973, Robert Rung Insurance has been helping drivers throughout Lincoln, NE, protect themselves against the unexpected with auto insurance policies tailored to their unique needs. This independent agency works with a variety of industry-leading carriers, giving them an almost endless array of policy options to choose from. Visit their website for more on their wide selection of insurance services, get more tips and advice on Facebook, or call (402) 483-2279 to request a free quote today.

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