Factors that Impact the Cost of Your Auto Insurance Rates

Auto insurance is an essential and often legally required investment for motorists. If you own or operate a car, truck, van or other automobile, having the right coverage should be among your top priorities. Still, while most vehicle owners know the importance of auto insurance, they may not fully understand how to get the best auto insurance rates while retaining suitable coverage. That’s where the team at Leicht Insurance is prepared to offer guidance and assistance.

How Are Auto Insurance Rates Determined?

Insurance carriers must conduct a thorough and in-depth analysis of your situation and circumstances when quoting you a rate for your auto coverage. Although providers may vary in exactly what they analyze and how much weight is given to each criterion, you can generally expect the following factors to be considered:

• Location—If you live in an area with more traffic or a higher risk of crimes involving your vehicle (e.g., theft and vandalism), insurance companies will likely charge you greater rates due to these inherent risk levels.

• Insureds’ personal details—Whether you are the only person listed on your policy or have a spouse and children insured, carriers must consider the details of each driver, such as their ages and genders.

• Driving records—Insurance carriers scrutinize your driving history when determining rates to understand how safe and responsible you may be behind the wheel. If you or another insured has a clean record, you may enjoy savings, whereas a history of traffic violations and accidents will likely result in higher premiums.

• Vehicle specifications—Your car’s make, model, age and value can all make a significant difference in rates. Generally, newer and more expensive vehicles cost more to insure, although in some cases, specific security and safety features included in such models may also garner discounts.

• Claims history—Carriers are typically wary of drivers who have filed several claims against their auto insurance in recent years. This makes them appear riskier to insure, thus often leading to higher costs.

• Policy details—The coverage options (e.g., liability coverage, collision coverage and comprehensive coverage) you select, as well as your deductible and coverage limits, can all greatly influence your premiums.

We’re Here to Help

Contact Leicht Insurance today to learn more about auto coverage options or to get a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.