While an excellent driving record works in your favor, it's only one part of the equation used to determine auto insurance premiums. In fact, providers consider a variety of qualities that have little to do with your time behind the wheel. Here's a closer look at three of the most prevalent factors.
Which Factors Affect Auto Insurance Premiums?
Teen drivers cause around $13.6 billion in injury-related costs annually, while the rate of fatal crash involvement begins increasing around the age of 70. As a result of the increased financial risk, providers often charge higher rates for drivers under the age of 25 and over 65. Gender also plays a role, especially with younger drivers, as male drivers between the ages of 16 and 19 are involved in fatal crashes at two times the rate of their female counterparts.
Where you live can either help or hinder your policy rates as well. In areas with high crime rates, like auto theft and property damage, there's a higher chance of claims. Traffic levels are also considered because the more vehicles there are on the road, the bigger the risk of accidents. For those reasons, it's common for individuals living in urban areas to experience higher premiums than drivers in smaller towns and suburbs.
3. Credit Score
For auto insurance companies, risky spending behavior is a dangerous trait for a driver to have. The providers view poor credit scores as an indicator of high-risk behaviors that could translate to the roadway. Luckily, it's one of the easiest factors to change. If your credit score is subpar, work to raise it by making all payments on time and paying down debt.
Searching for a quality auto insurance policy? Reach out to the experienced team at Quinn Agency, LLC in Meadville, PA. Since 1992, the family-owned and -operated agency has worked closely with drivers and residents across Crawford County. The dedicated team is committed to providing personalized service to help each client identify the most budget-friendly plans for their needs. Browse your coverage options online, and speak with an insurance agent today at (814) 337-2766.