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The Factors that Influence the Cost of Auto Insurance

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Your risk profile is one of the factors that will determine how much you will have to pay for auto insurance. Car insurance companies charge people more if they have a higher risk profile. There are many factors that can affect your risk profile.

Your Age

Young people are more likely to be involved in a car accident. They are also statistically more likely to engage in risky behaviors while behind the wheel of an automobile. That is why they will have to pay more for their car insurance. Your car insurance rates will likely drop after the age of 25. Your premium may also drop even more after you turn 50.

Your Driving History

Your driving history is something that you should keep in mind when you are looking for insurance. The quotes you see for car insurance online will factor your driving history. If you have a DUI charge, speeding tickets, reckless driving charge, or at-fault accidents on your record, then you will have to spend more on your car insurance. Not only will traffic violations and tickets inflate the cost of your current car insurance premium but you may also have to pay more for your future premiums.

Gender

Studies have shown that males are more likely to be involved in a car accident. That is why they will typically pay more for their car insurance than females. However, a man's insurance premium will likely drop once he reaches his 30s. Studies have shown that men and women who are in their 30s have similar crash rates.

Your Credit Score

Your insurance company may look at your credit report. Studies have shown that people who have a credit score under 600 typically file more claims. People with poor credit also file more expensive claims than people who have good credit.

Your Car Type

The type of car that you drive will influence your car insurance rates. If you drive a car that has been involved in several car accidents, then you will have to pay more for insurance. You will also have to pay more for your insurance if your car has a high theft rate. The purchase price, the cost of repairs and safety tests will also affect how much you will have to pay for your car insurance.

Your Zip Code

The place you live can affect your car insurance costs. If you live in a crime-ridden area that has a lot of thefts, then you will have to pay more. You may also have to pay more if you live in an area that is prone to floods and wildfires.

Annual Mileage

The more you drive, the more likely you will be to get into an accident. That is why high-mileage drivers typically pay more for their car insurance. You should contact your insurance company if your mileage has decreased. You may be able to save money. Your car insurance rate is not fixed. Your car insurance rate may go up or down based on a number of factors. Your annual mileage, zip code, gender, age, credit score, car type, and driving history will determine how much you will have to pay for your car insurance.

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