When it comes to auto insurance, there are a few key factors that can affect your premiums. These include the type of car you drive, your driving habits, demographic factors, and the coverages, limits and deductibles you choose. The most important factor is your driving history, as insurers set policy prices based on the risk of having to pay a claim. Other factors that can influence your rates include your age, gender, credit score, zip code, and the anti-theft features of your car.
Knowing the factors that affect the cost of car insurance can help you compare quotes and review policy renewals. Generally, these imperfections tend to lose importance over time. Most fines and accidents without injury stop affecting your rate after three years, while accidents involving injuries usually don't affect your rate after five years. However, a DUI ticket can affect your premium for up to 10 years.
Having only the minimum liability limits required by the state can result in the cheapest car insurance premiums, but this can put you at a significant financial risk. Paying for car insurance is a significant part of the cost of owning a car, so anything you can do to lower the rate will benefit your budget. The year, make and model of your car will also affect your insurance premium, so it's important to check quotes before buying a new car. When it comes to auto insurance, it's important to understand all the factors that can influence your rates.
This includes your driving history, age, gender, credit score, zip code and the anti-theft features of your car. Additionally, having only the minimum liability limits required by the state can result in cheaper premiums but may put you at risk financially. For more information on factors affecting car insurance rates and the cheapest cars to insure, see WalletHub's guides.
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