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Auto Insurance: What Affects How Much You Pay for Auto Insurance?

When most people set out to buy a new or used auto, they don’t put a lot of thought into the different factors and costs associated with auto insurance. Most people will take a minute or two to get a few auto insurance quotes over the internet, but in all reality, they simply take the first policy that’s offered to them within their price range.

Many people who are buying a second or third vehicle won’t even take the time to get auto insurance quotes from different companies, and simply add the new auto to their existing insurance policy. What many don’t realize is that there are many factors that affect how much you pay for auto insurance policies, and if you don’t take the time to reassess your circumstances, you might miss out on low cost auto insurance policies.

One of the most important things that will always affect how much you end up paying for auto insurance coverage is the kind of driving history that you have. If you are a relatively safe driver that doesn’t have a lot of traffic violations, speeding tickets or accidents on their driving record, it’s a good chance that you’ll be able to get one of the auto insurance policies that involves low cost coverage. If you have children that drive and are also covered under your current auto insurance policy, you should know that their grades can also have a direct affect on your policy premium.

Besides driving and school records, one of the biggest factors likely to affect the kind of auto insurance quotes that you’ll receive is the area of the country and even the city that you live in. Sometimes people that live in two different zip codes in the very same city will receive a drastically different auto insurance quote. Auto insurance underwriters often use accident and speeding ticket records to pick out areas of a city that are more prone to expensive auto insurance claims. These parts of the city will undoubtedly enjoy a more expensive deductible and liability limits.

The specific auto model you are driving can also have significant impacts on your associated auto insurance rates. The cost, age, mileage, and even the color of the auto may impact how much a specific insurance company may want to charge for your coverage.

Finally, the level of coverage you choose has a direct impact on your auto insurance rates, taking a higher deductable will raise your premiums and vice versa. Companies used many factors to set their auto insurance quotes, including information about you, where you live, the auto itself, and how you plan to use the auto.

It's a bad idea to go with the first quote you’re given, or simply default to your current auto insurance company. You should always shop around to compare auto insurance rates and get a good deal.