Here are some key factors that can influence auto insurance pricing:
- Your driving record has a major effect on price.
- Rates can also vary depending on where you live.
- Drivers with good credit-based insurance scores tend to pay less in states that allow insurance companies to use credit when calculating insurance premiums.
- You can often save money with multi-policy discounts
Question I have a good driving record, but is that the only thing insurance companies consider when they decide what to charge for auto coverage?
Karen Caldwell is a Farmers Insurance® agent in Fairfield, Ohio. Here, she discusses the many factors that go into auto insurance pricing.
Answer What you pay for auto insurance depends on several factors, including your driving record and where you garage your car. Obviously, your driving record matters a great deal. Traffic tickets and prior auto accidents correlate with a greater chance of a future loss, and their presence on your record can result in higher premiums. In general, the fewer accidents and traffic violations in your past, the less you will pay for auto insurance.
Where you garage your car is also very important. Some areas are more densely populated, which can increase the risk of an accident or other cause of loss — such as theft or vandalism.
Does my credit score matter?
In most states, insurers also consider your credit history as one factor in determining your insurance premium. That might not seem relevant, but there’s actually a high correlation between certain elements of your credit history and how likely you are to have an insurance claim. In general, maintaining good credit can help save you money on auto insurance in most states.
Finally, insurers may take into account your age, gender and marital status when calculating your premium. This information helps insurers develop a premium that accurately reflects your risk of loss.
How can I save on my auto insurance?
At Farmers, we offer multi-policy discounts for certain types of policies. The more policies you have with us, the greater the discount may be. Many customers choose Farmers for their auto, home and life insurance so they can take advantage of multi-policy discounts. We also insure other types of vehicles in your household, like boats, travel trailers and ATVs.
The information contained in this page is provided for general informational purposes only. Read our editorial standards for Insurance Questions and other content. We make no representations or warranties of any kind, express or implied. This does not refer to any specific insurance policy and nothing herein is intended to replace or modify any terms in your actual policy.
Farmers may also provide information on topics that are not directly about insurance policies or coverage that we believe could be helpful to you. Information in such articles is not meant as professional advice, and any reliance you place on such information is therefore strictly at your own risk.
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