Like any other type of coverage, auto insurance premiums are based on your level of risk. Some drivers are considered riskier to insure than others, as the likelihood of having to pay out a claim is greater, so they will be charged higher rates. To better understand what your premiums will be, here are a few common factors that help determine a driver's risk level.

How Are Auto Insurance Rates Determined?

1. Age

Drivers under the age of 25 have less experience on the road. This usually means they have higher chances of an accident. For this reason, younger drivers are almost always charged higher rates than more experienced ones. Additionally, once a driver passes age 65, it's also not uncommon to see higher premiums. Vision or hearing issues, slower response times, and less refined coordination are all natural byproducts of age, and they can significantly increase an older driver's risk of an accident.

2. Driving History

Parking citations and low-level traffic violations usually have no effect on your car insurance premiums. However, if you have a history of high-risk violations, like excessive speeding or drunk driving, especially in the previous three years, higher premiums are likely. Your driving history tells an insurer about your trustworthiness behind the wheel, and they will base their rates on past driving behaviors.

3. Location

In general, areas with more drivers will have higher car insurance rates. This is because the odds of an accident only increase when more drivers are concentrated in one locale. Additionally, some areas are more prone to thefts and vandalism, tornadoes, wildfires, and other perils, which also increases the risk factor considerably.

4. Annual Mileage

On your initial insurance application, the carrier will ask how many miles you drive in a typical year. Those who drive fewer miles are seen as less risk since they aren't on the roads as much, which makes lower premiums available to these individuals. On the other hand, a daily driver who commutes to and from work will be viewed as higher risk, and their insurance premiums would be calculated accordingly.

When you're in the market for auto insurance, trust JMS Insurance Agency. Serving the Fort Bend, Harris, and Montgomery counties in Texas, they provide vehicle, home, and business insurance solutions. They are here to help you protect your most valuable assets. Call (281) 494-1500 to request a quote from an insurance agent or visit them online to view their auto coverage options.