How much is auto insurance?
Whether you are in New York or California, or anywhere in between, trying to figure out how much your auto insurance will be is the million-dollar questions.
Unfortunately, like most answers in the insurance industry, it depends.
It depends on many factors that actuaries have built into the rating platform to try and perfectly rate your auto insurance.
To better help you understand what comes into play, I am going to discuss some of the rating factors so you at least you have a little more knowledge of what matters.
Rating Factors
- Driving History- The cleaner your driving record is the cheaper your auto insurance will be. That might seem obvious but it is a crucial factor when determining how much you will pay.
- Insurance Score- Insurance score is a credit-based score that insurance company’s use to determine rates. They have figured that consumers with a higher credit score are usually better insurance consumers.
- Age- The number of years you have been driving or the experience you have had will be a factor. Younger newly licensed drivers along with elderly drivers typically pay more for your auto insurance. This is also determined based on the data that the insurance company’s have on claims.
- Type of vehicle you own- Each vehicle is different. New vehicles cost more to repair but they also have more safety features. Each specific vehicle determined by a VIN number will be required to determine your rates.
- Household factors– Many different factors regarding your household will go into play.
- Married verse Single
- Age of the youngest driver. Do you have young drivers on your policy or living in your house?
- Do you own your home or rent?- Homeowners will get a discount and can also package other insurance with your auto insurance.
- Do you own more than 1 vehicle? Policies that have 2 or more vehicles get multi-vehicle discounts that start around 20%.
- Usage of the car– What do you use the car for? Do you drive for business, or do you commute to and from work? Maybe it is a pleasure vehicle only used in the summer. While these answers might not change the pricing dramatically they will make a difference.
These are just a small list of the questions insurance company’s will ask when determining the cost of your auto insurance.
What you can do to lower the cost
Listen, insurance is expensive and is only going up.
The best thing you can do to save money on your car insurance is to use an independent insurance agent who can provide multiple options for you.
They will be able to give you options and also let you know about discounts that you may be able to take advantage of.
If you don’t know an agent or want a review of your insurance?
Click the button below now to schedule a time to talk to one of our trained insurance professionals.
