Some factors that may affect your auto insurance premiums include your car, your driving habits, demographics, and the coverages, limits and deductibles you choose. These factors may include factors such as your age, the anti-theft characteristics of your car, and your driving history. Your driving record includes your history of moving traffic violations and accidents at fault. It's one of the most important factors that determine your car insurance rates.
Auto insurance companies look at your driving history for the past three to five years, depending on your state. If you've caused a car accident or received traffic tickets, expect to pay more for car insurance. Generally, an auto insurer will charge a higher rate if any driver under the age of 25 is covered by a policy. Fortunately, these imperfections tend to lose importance over time.
So, if you've had a few crazy years with some tickets or accidents in the past, making an effort to drive slower and carefully to avoid future problems can pay off in time. Most fine and non-injury accidents stop affecting your rate after three years, and accidents with injuries generally don't affect your rate after five years. However, a DUI penalty can affect your premium for up to 10 years, and many companies don't insure someone with one. Your rates will be lower if you keep your record free of accidents, speeding tickets and other violations.
The area you live in is an important factor for insurers to consider because it affects the likelihood of damage to your vehicle. When buying car insurance, it can be tempting to lower your rates by choosing lower amounts of coverage or increasing your deductibles. The more types of coverage with higher limits you have, the more it will cost you, as the insurer takes additional risk by providing you with more coverage. Multiple violations or accidents may result in you not having insurance under the underwriting rules of some car insurance companies.
Property, casualty, life and health insurance services offered through NerdWallet Insurance Services, Inc. Your car insurance rates may rise or fall when there is a change in any of these risk factors. Statistically, teens are more likely to cause car accidents than the average driver, so insurance companies charge them the highest premiums. A supplier may have fewer claims for their model vehicle and, in turn, offer a lower rate than another auto insurer.
From an auto insurer's perspective, drivers who have previously filed an auto insurance claim are more likely to file a claim in the future. For example, a company may want the “gender” you indicate on your insurance application to match the gender on your driver's license. Young drivers can be added to a family policy to help reduce the impact of their high insurance rates. Age affects the cost of car insurance up to 389% on average because certain age groups are statistically more likely to be involved in accidents.
Auto insurance premiums are determined by factors you can control, such as where you live, the type of car you drive, and how much coverage you buy and can't, such as your age.