Factors That Determine Car Insurance Costs

​Insurance is a big deal. People need to have a basic level of protection against all kinds of accidents and natural disasters. Moreover, you should know how much it costs.

There are many factors that determine how much you will pay for car insurance. As with most things, it is important to be aware of all the elements that affect the cost of your policy.

Record On The Road
Your premium will be lower if you present a better driving record. A history of accidents or serious traffic violations will mean you will likely pay more to insure your car.

How Often You Use Your Car
Driving often might increase your chances of getting into accidents. Because of this, you will pay a higher price for insurance if you use your car daily or for long journeys.

How Long You Have Been Driving
Mature drivers are known to have fewer crashes and accidents than younger drivers. People aged 25 years and under are normally charged higher insurance rates.

Where You Live
Urban drivers pay more for car insurance than drivers in rural areas because of more accidents or thefts in urban areas. A car’s anti-theft features or where it is parked can also affect car insurance costs.

Your Gender
According to statistics, women tend to have fewer accidents than men. Thus, they usually pay less for car insurance than men.

Choice of Car
The value of your car is key when considering insurance costs. Insurers also look at the safety of your vehicle and how well it protects occupants. 
Other variables to consider are:

• Car’s safety record
• Possibility of theft
• Repair costs
• Engine size

Likelihood Of Filing A Claim
The amount you may pay for car insurance is influenced by the likelihood of you filing an insurance claim. This is determined using your credit-based insurance score.

Type Of Insurance Coverage
Your auto insurance coverage, your deductible amount, and the available policy types affect the amount you pay to insure your car.

Other factors that affect the premium price that can vary from one area or state to another are:

• Weather trends
• Cost and frequency of litigation
• Medical care and car repair costs
• Prevalence of auto insurance fraud

Conclusion
The cost of car insurance is often the first thing that comes to everyone’s mind when they think about it. Thus, it’s important to understand why the costs are incurred. 

At Insurance Agency Network, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (425) 681-0996. Get your free quote today by CLICKING HERE.