The price you pay each month on car insurance is influenced by a variety of factors. Rates may increase or decrease depending on the state you live in, your age and how much you drive during an average workweek. If you’re wondering what goes into determining your car insurance rates, read on to learn more.
Factors that Impact Car Insurance Rates
Driving Record
If you’ve been involved in a car accident or recently received a traffic ticket, you may see your car insurance rates climb up. DUI charges or other events will also have an impact on what you pay each month. A car accident can remain on a driving record for up to 5 years and cause rates to increase substantially. Maintaining a clean driving record keeps car insurance rates low the longer you’ve been on the road without an accident.
Make, Model & Year of Vehicle
Typically, inexpensive vehicles will cost less to cover under insurance. The market value of a vehicle plays a big part in calculating your car insurance rates. For instance, a used vehicle that costs $1,500 shouldn’t require high monthly premiums because replacing the car outright in the event of an accident would likely cost less than the price to repair the damage.
Coverage Type
Liability, uninsured motorist and full-coverage insurance packages all come with different car insurance rates. It’s also important to note that if you are making monthly payments on your vehicle, your car dealer will likely require you to maintain full-coverage, which tends to be the most expensive option. If you own your car outright, you can choose to have a lower-tier coverage option to save money.
Age
For the most part, the older you get, the lower your car insurance rates will be. From the age of 25 onward, most individuals will see their insurance costs continue to drop, reaching a maximum discount by the age of 50. Since younger drivers have spent less time driving, they are more likely to be involved in a motor vehicle accident. This makes companies increase car insurance rates to hedge against the increased risk of providing coverage.
If you’re interested in purchasing a new car, truck or SUV, visit Valley Automall to browse among a wide selection of top-quality vehicles. Our friendly associates will help you find what you need and answer any questions you have along the way. Take advantage of our many specials on new and used vehicles along with our attractive incentive programs to get the best deal around. Contact us today at 702-570-2257 for more information on car insurance rates.