Auto Insurance Premium Factors

There are a number of factors that affect auto insurance premiums, which you may or may not be aware.

The consequences of having an auto accident can vary and haunt your for years afterward. Accidents impact not only obvious things like auto insurance rates, driving records, and property; they also affect physical and mental well-being as well as financial stability.

Age and gender can also play a role with male drivers under the age of 25 typically paying more for auto insurance premiums than their female counterparts. As people age and gain experience, their insurance rates will usually drop but other factors will come into play as well.

Some insurance companies may factor in a driver's credit rating and will definitely check out your driving record to see if you've accrued any points on your license. A few insurance companies may even factor in your location though many states have passed laws prohibiting the practice.

Equally important to keeping premiums low is to maintain you current auto insurance coverage and not allow any lapses or gaps in coverage. Being caught driving without insurance can incur legal and financial penalties and if your license is suspended, it will have a negative effect on your insurance premiums.

Finally, insurance carriers will consider other factors such as whether your car is new or used as well as whether you live in an area that poses a greater theft risk, though this will only likely affect you if you have anti-theft coverage such as through a comprehensive coverage plan.


How are my auto insurance rates determined?
Your particular auto insurance premiums are based upon a number of factors including any accidents you've been involved in, age, gender, credit rating, location, whether your car is new or used, and most importantly your driving record. If you have a comprehensive policy other factors will come into play including how much of a risk to theft your vehicle is.

How can my credit rating affect my auto insurance?
Credit rating can play a role in determining your auto insurance premiums. Many companies look at how you handle your finances as a sign of how responsible you are. If you have a solid credit history and low debt-to-income, you will likely be viewed more favorably than someone who spends freely and racks up lots of debt.

What personal information do I need to give to my agent or insurance company?
You will need to provide things such as address, vehicle specifics (year, make, and model), Social Security number, and other very basic information. You should also be able relate your insurance history and any information about other drivers on the policy. Be prepared to possibly give them permission to review your driving record and credit history.