When you are applying for new auto insurance coverage, it is important to recognize the factors that will impact the price. Although many factors are involved in determining your monthly payments, a few key items are important to recognize.
Your Driving History
A major part of determining the expense of insurance coverage is the actual driving history of the applicant and any names that are under the same policy. Accidents, DUIs or reckless driving tickets will add to the monthly cost because it suggests that the company has a higher risk. Young drivers with limited historical data will also see an increase due to the limited data related to risks.
Different vehicles are charged different rates. Some cars are more expensive to ensure due to the cost of repairing or replacing the vehicle. Other vehicles are less costly because it is not hard to make changes or repair damage when an accident occurs.
It is important to recognize the possible factors that will increase or decrease the price of insurance. Although auto coverage is impacted by many factors, historical data and the vehicle are a major part of determining the price. To learn more about factors that impact coverage costs, contact Mike Leonard Insurance Agency.