What Factors are Considered When Calculating Insurance Rates?

With high auto loan rates, a monthly car payment, and multiple other bills, all car owner are interested in cutting costs when it comes to insurance. Owning a car can definitely be expensive, but it is possible to save on insurance when you understand what factors insurance companies consider when calculating your car insurance rates.  Here are a few of the factors considered when calculating insurance rates—some controllable, some of them are not.

Age: Age is tallied up as experience in the insurance industry, and the more experience a driver has, the lower their rates. That means the older someone is and the longer someone has been driving, the lower his or her rates may be.

Payment History: Numerous late payments, or cancellations, may greatly increase your renewal premiums.  Ask Avanti Insurance on ways to reduce this factor.

Driving Record (Tickets & Accidents): Insurance companies also look at your driving record to determine your rate. The fewer accidents you have been responsible for, and the less tickets you have acquired, the lower your rate. Ask Avanti Insurance about Accident Forgiveness, Deductible Dollar Savings, and proven ways to reduce the premiums of newer drivers.

Vehicle Use: Insurance underwriters will take into account how often you actually drive your car when determining your rate. When gathering information for your quote, the representative will ask questions like what your total annual mileage is, when you typically drive your car, and how many miles you drive to and from your daily activities. Those who drive their cars less often will generally pay less in insurance than those who drive more often.

Vehicle Type: The type of car you drive will also affect your insurance rates. Cars that are newer and more expensive to fix will yield a higher insurance rate than cars that are older and less expensive to fix. Also, cars with better safety features will be less expensive to insure.

Multiple Policy: Our companies offer large discounts for insuring multiple vehicles with our agency and/or insuring both your home and automobile with us.

These are just a few of the most common factors that affect insurance rates. For more information about how to save on insurance rates, or to get a free quote, contact Avanti Insurance today.