Price-determining factors of your policy

When it comes to shopping for auto insurance people are often confused by how strongly the quotes differ in case you introduce different data. There's no secret in that the insurance companies use different variables to evaluate the risk they will have asses when providing you with a policy. And every company uses a different set factors, combination and weight of thereof in the final rates, that's why the same policies can vary significantly in price between two different companies. However, the vast majority of insurance companies agree that certain factors are more important when determining the price because they allow evaluating the risks more accurately than other variables. These factors include:

Driving record

When getting auto insurance quotes, your driving experience and record will be closely studied by the provider. And the more there are accidents and violations the higher will be your rates. This is because a person who had accidents previously is more likely to have them again in the future than a person with a clean driver’s record.

Credit rating

People with higher credit scores are more likely to pose less risk to the insurance companies than those who have bad credit lines and due bills. That's why your credit rating will strongly influence your insurance rates.

Mileage

The less you drive the lower will be your rates. From a pure statistical point of view higher mileage means that an accident is more likely to occur. Lower mileage also allows you to opt for discounts if you drive less than a specified number of miles per year (usually 10,000 miles).

Age

Younger drivers tend to be more aggressive and risk-taking on the road, that's why insurance companies will charge you with higher rates if you're younger even if your driving record is perfectly clean. On the contrary, older drivers will have lower rates even if a person is likely to take risks, because there are fewer claims filed by this age group.

Car

Car make and model also strongly influence the rates. The safer your car the less you'll pay for insuring it. That's why fast sports cars will sometimes cost you twice the rate you'll pay for a family van, because they are likely to take and deliver more damage, and are more likely to get stolen.