Have you ever wondered what factors are considered to determine your auto insurance rates? There are several factors the underwriters consider. Some of these are:

  1. Gender. A woman tends to be in fewer accidents and exhibit less aggressive behaviors. A female usually has lower rates than males.
  2. Driving record. A prior history of accidents and tickets will obviously raise your premiums. On the other hand a clean driving record will lower your rates.
  3. Credit history. If you are fiscally responsible, underwriters assume you are more responsible in other areas, including driving. Therefore, the higher your credit score, the lower your rates.
  4. Your car. The more expensive or unique (such as a classic car or obscure sports car) the higher the rate can be. Color can also play a role in your premiums; red cars have been historically more likely to be stolen or raced.
  5. Deductible. The lower your deductible the higher the premium because the insurance company will pay out more in the case of a claim.

Although this is not a comprehensive list of factors that determine your auto insurance premium, these are the primary ones. You will notice that you, the driver, have control over most of them. In conclusion, you have a great degree of control over your rates. Stay smart, stay covered. Auto insurance is worth the investment.