When it comes to purchasing car insurance, shopping around is probably the best thing you can do to lower your overall coverage costs. However, if you’re getting similar prices from most insurers, it may be because of a few latent factors.
Here are 4 factors that can directly affect your auto insurance rates:
1. Your Address
Statistics suggest that most accidents tend to occur near your home. Hence, if you are a resident of a densely populated area, your chances of thefts and accidents are likely to increase. Likewise, certain neighborhoods have higher repairing costs, thereby raising your auto insurance rates.
2. Your Credit Score
Most car insurance companies tend to take your credit score into consideration while generating interest rates. Generally, your credit scores and insurance rates are inversely proportional to each other: the higher your credit score, the lower the price of your monthly premiums.
3. Safety Rating of Your Vehicle
If you purchase a vehicle with a higher safety rating, it means that your chances of getting into major accidents and incurring huge expenses on medical and repair bills will be relatively lower. This automatically reduces your insurance costs. However, if your car has lower safety ratings, you may end up paying a higher price.
4. The Age of Your Vehicle
If you are purchasing insurance for an old or second-hand vehicle, your insurance company will likely quote you a higher car insurance rate. This is because the cost of repairs for older cars tends to be higher than newer cars. Also, old cars are at a greater risk of getting ‘totaled’ in accidents, which, in turn, lowers their collision coverage rates.
These were some important factors that determine the price of your car insurance. If you need assistance in choosing the right auto insurance, contact the experts at Gant Insurance Agency in McKinney, Texas. We can help you with all your coverage needs.