January 12, 2023

What impacts your auto insurance price?

Many factors can impact the price you pay for auto insurance, and of course every company will say they have the best deal for you. That's why working with an Unbiased or Independent insurance partner who helps you to easily compare rates with the best insurance companies is important. Here are some carefully explained reasons for why your auto insurance prices might change.

Your age impacts your insurance rates – This means your rates will typically drop as you get older and have more driving experience. Some insurance companies drop your rates when you turn 25, rates begin to level off around 35 years old, and drop again around age 48-50. You can expect some insurance companies to increase your rates when you turn 65 as their data shows that you may be at a greater risk of having an accident.

Speeding and Traffic Violations – Speeding tickets will impact your insurance premium with most companies for 3 years. Each ticket you receive will compound your premium increases because multiple moving violations makes you at greater risk to have an accident.

At-Fault Accidents – Accidents where you are viewed as the at fault driver will have a significant impact on your insurance rates for a minimum of 3 years.

Your Location – If you live in a highly populated area you will likely pay more for your insurance due to a greater risk of collisions and theft.

Credit Rating – In some states your credit rating can be a contributing factor in your auto insurance price. The better your credit score, the better rate you will pay.

Continuous Insurance with the same company can lower your rates – If you keep your insurance consistently in force, you will likely receive a lower auto insurance rate. Some insurance companies offer discounts for maintaining your insurance with the same insurance company for an extended period of time.

Coverage Selections – Selecting higher coverage limits that protect you properly is really important, but it will likely increase your rates slightly. If you have collision and comprehensive coverage on your policy you can offset your higher liability coverage premiums by raising your deductible from $500 to $1,000.

OCHO can help you compare your auto insurance prices really quickly to make sure you are getting the best value.  You can’t always control your life circumstances, but OCHO can help find the best coverage for you and your family.