Auto insurance is an essential expense for any driver. However, the cost of auto insurance premiums varies among drivers. The premium is a monthly or yearly payment made to the insurance company to keep the coverage active. Here are five factors that can affect your auto insurance premium.
 

5 Factors That Affect Your Auto Insurance Premium
 

1. Age and Gender

Statistically, younger drivers and men are more likely to have accidents, which means that they pay higher premiums. Drivers between the ages of 16 and 25 usually pay the most for auto insurance. On the other hand, women and older drivers tend to pay lower premiums.

2. Driving Record

A driver's driving record is one of the most significant factors that affect the auto insurance premium. Drivers with a history of accidents, tickets, or DUI convictions pay higher premiums. If a driver maintains a clean driving record for a few years, they can see their premium decrease.

3. Vehicle Make and Model

The make and model of the vehicle you drive can also affect the auto insurance premium. Some cars, such as sports cars and luxury vehicles, have a higher risk of theft or accidents, which means that insurance companies charge higher premiums for them.

4. Credit Score

In most states, insurance companies are allowed to consider a driver's credit score when determining their auto insurance premium. Drivers with a low credit score may pay higher premiums than those with a higher score.

5. Location

The area where a driver lives can also affect the auto insurance premium. If a driver lives in an area with a high crime rate or a high rate of accidents, they may pay higher premiums than drivers in safer areas.

Understanding the factors that affect your auto insurance premium can help you make informed decisions about your coverage. To learn more about auto insurance and get a quote, contact NOMA Insurance: Allstate Insurance in Omaha, NE. Call (531) 999-8920 to learn more about their agency and how they can provide you with personalized coverage options that fit your needs and budget.