Local Auto Insurance Quotes

What Factors Affect Auto Insurance Rates?

First, an insurance rate is the price the insurance company charges for each unit of insurance coverage. If you have a multiple coverage policy, the combined price for each coverage that makes up your insurance policy is called the premium.

Your auto insurance rate is determined by multiple factors including but not limited to tickets, accidents, credit, where you primarily drive, where your vehicle is garaged, how often you are driving, age, the value of your vehicle, discounts you qualify for.

Tickets and Accidents
Your 3 to 5 year history of tickets and involvement in accidents is a good indicator of your future driving history. According to the Texas Department of Public Safety, "alcohol intoxication and drugs, speeding over the posted rate, failure to yield right-of-way, following too closely, driving on the wrong side of the roadway, and driving under the minimum speed (impeding traffic)" are the six leading causes of motor vehicle crashes.

Credit
Not all companies use credit when calculating your car insurance rate but it has been proven that a direct correlation exists between credit and future insurance claims.

Primary Driving Area
The area in which you are primarily driving gives the insurance company an idea of what kind of traffic and other hazards you're exposing yourself to when driving. A hazard is any exposure that increases your chances of being involved in a claim. Someone who drives in a rural area is less likely to be exposed to heavy traffic than someone who drives primarily in the city and on major highways and therefore may receive a lower rate.

Driver age
A driver's age is especially useful when determining rates for youthful drivers because of their lack of driving experience. According to the National Highway Traffic Safety Administration 35% of all teen deaths between ages 15 and 20 were due to motor vehicle accidents. The NHTSA has already implemented processes to ameliorate this issue. For now, you can expect to get an increase in premium when adding your new driver to your auto insurance policy.

Value of your vehicle
If the cost to replace your vehicle is low, your insurance premium will reflect that. For example: Sarah and Saray are twins, Sarah drives a 2011 BMW, and Saray drives a 1987 Toyota. The cost to replace Sarah's BMW is significantly higher than the cost to replace Saray's Toyota, and Saray enjoys a much lower insurance premium.