Car accidents happen unexpectedly, and they’re often unavoidable. Purchasing adequate auto insurance is one of the best ways drivers can protect themselves. Insurance companies determine premiums based on a variety of factors that play into each client’s specific risk level. Understanding what these are will allow you to better manage your coverage costs. Here’s a look at the key information that’s considered when calculating rates.

What Determines a Driver’s Auto Insurance Costs?

1. Location

People living in densely-populated cities tend to pay a higher amount for auto insurance than those residing in suburbs and rural areas. Having more drivers on the road increases the chances of getting into an accident.

Insurers will also take into account the crime rate for your particular zip code. If you live in a neighborhood where vehicle theft is prevalent, there’s greater potential for filing a claim, which will raise monthly premiums.

2. Driving Record

Driving history is one of the biggest indicators of how much of a risk you pose to an insurance company. If your record shows several traffic citations and accidents, coverage costs will be much higher than someone with a clean track record. However, the good news is that providers only factor in violations that have occurred within the last two or three years.

3. Type of Vehicle

The safer your car is, the less you’ll pay to insure it. Having safety features, such as anti-lock brakes, blind-spot monitoring, traction control, and a backup camera, can help deter accidents. This makes you less risky for a company to insure. Coverage usually costs more for performance vehicles, however, since they are designed to reach high speeds.

4. Credit Score

Many drivers are unaware that it’s common practice for auto insurance companies to review credit scores when setting policy premiums. Some providers believe there’s a link between how responsible a person is with their finances and how likely they are to file a claim. Generally, a higher credit score reflects greater responsibility behind the wheel, while a lower score often results in higher insurance rates.

Whether you’re shopping for a new auto insurance policy or looking to lower current premiums, Advantage Insurers can help you explore your options. This insurance agency serves Habersham and White County, GA, offering a wide range of quality coverage solutions. They will assist you in securing the right protection for your unique needs. Being an independent agency allows them to search through products from a number of reputable carriers to find clients the best rates available. Call (706) 754-1590 to request a free quote, or visit them online to learn more about their services.