What Does Auto Insurance Cost?

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



2. Demographics

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

insurance equation.


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

your costs.


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.

April 28th, 2017|0 Comments