Factors That Influence Auto Insurance Rates

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Since the boom of the automobile industry, drivers have been skeptical of auto insurance and the amount they pay for it monthly and yearly. Recent reports show that the average American driver pays roughly $1,300 per year for car insurance while some drivers pay far less and some far more.

Many people do not realize what goes into affect on how insurance companies judge you on how much they will charge for auto insurance. The reasoning behind all their behind the scenes work is that they want to try and estimate how much you might cost their company over the course of time. For a simple example, if you’ve been in three car wrecks in the past two years, it is unlikely your monthly rate will be very low, as you come off as a high-risk driver.

How you drive and act on the road is a big factor in determining your monthly rate. For example, if you’ve been given speeding tickets, gotten into accidents or received a DUI, those will affect your rates negatively.

Driving smart and safe day to day will help you in the long run for getting a cheaper rate.

Another factor is where you live, even though you may not have control over this. State by state, the amount of car insurance you pay does vary, with Louisiana among the highest and Maine among the lowest.

Your credit score will also affect your auto rate. Generally, those with higher credit scores pay less than those with low credit scores. Whether you rent or own your home also goes into account, as insurance companies usually give a better deal to homeowners. Same goes for your marital status, married people generally pay less than single or divorced people.

All of these factors go into account when insurance companies decide your rates, some carry more weight than others. While these all can affect your rates, driving safely is the most important factor and that will either hurt you or help you in the long run.

Finding a honest and reliable auto insurance plan is easy, with many great options to choose from in the Chicagoland area.


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