Car insurance is like clothes: if you go around town without any, you’re going to find yourself in
some embarrassing trouble. It’s the kind of thing that is always worth having no matter the cost.
But once you know the factors that go into how insurers set their auto rates, you’ll have a better
idea of what auto insurance costs and how to find a policy that’s most worth it for your life.
Consider these factors when you’re shopping for your auto policy.
1. Where you live
Every part of your location matters, from the weather to traffic patterns to crime rates to the
number of young or high risk that also live in your area. For example, if you live in a city where
cars are often broken into or stolen, your Comprehensive rates may be higher because
companies know you’re at a higher risk of being the victim of an auto crime. Also, consider areas
where there is a high rate of Uninsured Motorist may have a negative effect on your uninsured
motorist coverage but also this could negatively effect Collision rates in your area. It’s mind
The most common and reasonable demographic that can affect your auto insurance rates is
your age. It’s a well-documented fact that young and inexperienced drivers get into more
accidents that than older, experienced drivers. So as long as you maintain a clean driving
record, you can expect your rates to drop over the years as you enter higher age pools. But we
can’t stop there! Oh No, that wonderful or ugly word called Credit! Like Homeowners insurance,
your credit and Financial habits have a huge presence in your Auto Insurance mathematical
calculation. Again, policyholders that have favorable credit and favorable Financial Habits get
discounted rates compared to policyholders with poor credit history and less than favorable
financial history. Lack of Credit or Financial history could also negatively evict your auto
3. Your driving record
This is maybe the most unsurprising factor: the more accidents and speeding tickets you have
on your record, the more you can expect to pay for insurance. It’s just one of the ways an
insurer can predict future losses and protect their policyholders as a whole. The longer you go
with a clean driving record, the more these past infractions will disappear and begin to lower
4. What type of car you drive
Not only does the value of your car come into play when considering the cost of your insurance,
especially if Comprehensive and Collision coverages apply, but also the size, weight,
horsepower and the insurance industry as a whole “Loss Experience” with that particular
vehicle. The old days of “insuring a diamond are more expensive than a pearl” days are gone.
Today technology and Loss Experience plays a huge role in determining what you pay for auto
insurance. A small vehicle that’s easily totaled even in a small accident that can also easily
cause injury may cost more than a minivan designed for safety. An expensive decked out
Chrysler Town and Country with all the bells and whistles may be much less expensive to insure
than the medium priced Chevy Camaro or the Dodge Charger. Reason being, think about who
drives the Town and Country and what the potential Loss experience would be compared to the
average driver of the Camaro or the Charger. Plus the Camaro and the Charger are more likely
to be the subject of Vandalism or theft.
Insurance is a complicated business, and the only way we can work out the best rate for your
insurance is to speak with you and get to know you. Give us a call at (417) 883-4343 and we’ll
work with you to find your lowest rate for the best coverage.