5 Top Factors that Affect Your Auto Insurance Rates
Consumers are always on the lookout for the best auto insurance coverage at the most affordable rates, but how do you know if you’re paying too much? Additionally, how can you protect against being under-insured or over-insured? A United Agencies representative can help evaluate your current policies for you, but in the meantime, here are 5 factors to consider when shopping for auto insurance:
1. Vehicle Make/Model:
The type of car a person drives is the main factor that determines how much you will pay for coverage. Commonplace vehicles such as Toyota Tacoma or a Honda CR-V are lower in cost to insure, while higher-end vehicles such as Mercedes, Audi or BMW will obviously cost more. High-end vehicles tend to be more vulnerable to theft, vandalism and traffic accidents.
A person’s personal budget plays a big role in cost. The more you can afford to spend on insurance, the better the coverage will be. If you have a small budget, you can expect to secure only the most essential coverage. But if you have a flexible budget, you can include riders, which cater to every possible emergency.
3. Your Location:
Insurance can get more expensive depending on where you live, where you drive and where you park your car at night. If you live in a highly populated, urban area, then congestion, accidents and insurance claims are more prevalent. Living and driving in a metro area will make your rates higher than if you live in a rural area, where having an auto accident due to these factors is less likely.
4. Driving Habits and Where You Drive:
If you spend most of your time driving in heavy, dense traffic, you will pay more. However, if you spend most of your time driving in suburbs or rural areas, thin traffic reduces the probability of car accidents. Which reduces the rates people get charged for insurance. And now, in the era of COVID-19 many people are driving less, which can reduce your rates.
5. Driving History:
One of the biggest factors that help to determine insurance rates is driving history. The more high-risk a driver is, the more insurers are going to charge for the coverage. Some of the things that contribute to a high-risk reputation include:
• Criminal Record.
• Claims History.
• Type of Vehicle.
We understand that insurance is an important necessity, which shouldn’t be taken lightly. Contact United Agencies for a free quote. Whatever your requirements, we’ve got you covered! Combine your auto insurance with homeowners insurance and save! Click the button below or call us toll-free at 800-800-5880 for assistance.
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