It’s common for auto insurance rates to increase and decrease throughout the duration of a policy. While some may find it nearly impossible to track, learning how companies determine the risk factor could provide a way to anticipate a change. Consider the following to figure out how to better manage your rates.

What Factors Affect Auto Insurance Rates?

1. Age

Young drivers are prone to spontaneity and distraction. Even though that might not apply to every teenage driver, insurance companies aren’t willing to take the risk and will charge this age group with a higher premium. The opposite is true for older adults, who tend to drive much slower and are usually more cautious. There may be a few exceptions, but, after previous encounters with this demographic, agencies are more likely to set a lower premium.

2. Driving Record

Each person is unique in the way that they handle their vehicle. A young person could be exceptionally careful about making each turn while an older person might prefer to floor it through an intersection. Whatever the case, insurance companies will review the records when it comes time to renew a policy. Those who stay within the speed limit and avoid accidents could see a gradual decrease in their premium while others who drive with reckless abandon may receive a slight increase.

3. Credit Score

Studies show that those with lower credit scores tend to file more insurance claims. While this might not hold true for everyone, it’s common enough to cause insurance companies to increase their rates. Keeping up with payments and minimizing debt is the best way to decrease the amount you owe each month. It shows that you can be trusted and won’t unfairly take advantage of all that the insurance company has to offer.

If you’re looking to upgrade your auto insurance, reach out to Somers Agency LLC. They’re an independent insurance agency that offers personalized solutions all throughout Lorain County, OH. Their agents will research the best rates on the market and construct a policy that suits your needs.  With exceptional customer service and complete coverage, they’re ready to help! Call (440) 324-3447 to request a quote or visit their website for additional information on car insurance.