Many factors are considered when pricing one's auto insurance policy. According to the National Association of Insurance Commissioners, the average cost of car insurance in the United States is about $880 per year, per car and these rates change each year. The Make section of Best Auto Insurance looks at the car-related factors, such as age, type, and brand, and how they're taken into account when auto insurance companies compile a quote specifically for you. However, it is important and beneficial to know the many driver-related factors that can also affect your rate. These factors are important to consider when you compare auto insurance quotes:
The age of the driver trying to get insured is a major factor when deciding how much an auto insurance policy costs. According to the National Highway Traffic and Safety Administration, this results from statistics that show drivers 20 years of age or younger, as well as drivers over the age of 65 tend to be in more accidents than those in any other age group. Drivers in these ages groups are considered a higher risk to insure and therefore have a higher premium. Statistically those between ages 50 and 65 are the best drivers and receive the lowest premiums for their auto insurance.
Driving habits refer to where and how far you drive on a consistent basis. For example if you drive 100 miles to work everyday through high traffic areas, versus a person who has a 10 mile commute through residential areas, you’re more likely to pay more for your auto insurance premium.
It is typical for insurance companies to give discounts to married couples because they statistically are safer drivers than those who are single.
Again statistics show that women are better drivers than men, especially in the under 20 age group. Therefore car insurance companies usually give better premiums to women than men.
Your driving record is another aspect considered when determining the price of a policy. Many companies offer good driver discounts for those with clean driving records. In contrast, those with bad records full of had multiple accidents, moving violations and other infractions sometimes will not even be offered an auto insurance policy. Therefore, when shopping around for auto insurance quotes, you should be as thorough and honest regarding your information as possible, so you can get an accurate quote.
An important consideration for auto insurance companies is also whether or not you will be a good customer and can afford to pay the premium they offer you. In light of this, your credit score affects your auto insurance policy. Not every state allows insurance companies to use this information to determine your premium’s cost, however the majority do, so it is beneficial for you to be aware of this.
All of these factors are considered by car insurance companies when compiling your auto insurance estimate. This is where the variance in your auto insurance quotes comes from. Remember that when you’re shopping around for car insurance quotes, companies will use all of these human factors to determine your premium. One of the best things you can do to ensure a low premium is to maintain a clean driving record, as this is the most easily controlled factor. If you can keep your driving record clean, you’ll ensure lower premiums for you and your family.