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5 Critical Factors That Affect Your Auto Insurance Rates

Factors-Affect-Your-Auto-Insurance-Rates

Your car insurance rates aren’t just determined randomly by your insurance provider. While your driving record is a crucial factor, there are certain other factors that are considered to determine the price of your vehicle insurance.

Here are some of the crucial factors that affect your auto insurance rates:

1. Age

Young drivers are more likely to get into accidents, as they tend to be less experienced. If you’re under 25 years old, for several major insurance companies, you belong to the high-risk group, so your auto insurance rates can increase.

2. Car Type

Airbags and anti-lock brakes are a few safety features that can decrease your overall insurance costs. Some insurance carriers may also consider larger cars safe than small ones. Luxury or sports cars that are expensive to repair will result in higher insurance rates. You can discuss with your insurance provider about how your car model will affect the insurance rate.

3. Location

Your primary residence is one of the critical factors affecting your auto insurance rates. Living in a city with a high crime rate will increase your premium. Also, the population density of urban areas tends to be higher, increasing the chances of accidents and collisions, resulting in an increased insurance rate.

4. Claim Records

If your records contain multiple at-fault claims, then your insurance rates are likely to be higher. However, not-at-fault claims may not significantly impact your premiums. One way to reduce this is to avoid filing claims for minor damages to your vehicle.

5. Car Mileage

Insurance providers will consider your car’s mileage to determine insurance rates. This is because the more time you spend behind the wheels, the higher is the exposure to risks.

These are some of the factors affecting your auto insurance rates. For assistance with all your auto insurance needs, contact the experts at Mike Leonard Insurance Agency in Texas. We can help you find the right coverage through one of our many carriers, including Kemper, MetLife, Nationwide, Travelers, Safeco Insurance, Progressive, and American Strategic Insurance.

At Mike Leonard Insurance Agency, our goal is to serve our clients with comprehensive personal insurance solutions at affordable prices. Because we are an independent agency, we are able to prioritize our clients' needs without having to worry about confounding factors such as commissions or overhead costs.