Auto Insurance Rates

Auto insurance is one of those pesky must haves that are a pain the driver’s seat, but a God send if needed. Auto insurance rates are set by each state and administered through the individual state’s insurance commission.

Everyone who intends to drive a vehicle on a public way must have the states mandated minimum level of insurance. It is not only for the protection of the driver, but others on the road as well.

Your individual car insurance rate and the premiums that go with it are based on several things. It is in part the escalating cost of car repair and health care costs related to accidents, but there are other factors involved and the consumer has some flexibility with the reasons.

The geographic location where you live has a huge impact on your auto insurance rates. Each zip code is analyzed for its risk potential and a high risk zip code will have higher rates. The risks involve the number of accidents in that area as well as the risk of certain types of vehicles being stolen. The overall crime rate is also taken into consideration and the probability of your car being vandalized.

The number of miles you drive annually affects your auto insurance rates. The more you drive increases the chances of being in an accident.

The make and model as well as the cost and age of your vehicle will determine the cost of your insurance. Sporty and high performance cars are more costly to insure as they attract the more reckless driver. Those with a need for speed will push their car to the limit more often and demonstrate a lack of regard for the rules of the road.

Men usually have higher auto insurance rates than women in their age group. Men tend to drive more miles and at greater speeds than women. Married drivers, especially those with children tend to the safer side of driving and drive within the speed limit. Single drivers with no responsibility tend to take more chances while driving and often ignore the rules of the road.

Younger drivers with less driving experience will have higher auto insurance rates than older drivers. Drivers under the age of 25 will pay the highest rates of all. Lack of driving experience is cited in many accidents involving drivers the age of 25.

Believe it or not, your credit rating will also affect your auto insurance rates. Those with bad credit are seen as unreliable and less than responsible and that translates to a high risk driver. After the under 25 crowd, high risk drivers have pretty expensive auto insurance rates.

Drivers with a history of traffic tickets, accidents DUI’s and other traffic related negatives fall into the category of high risk driver. Most states invoke a surcharge against your insurance for each ticketed offense for up to 5 years. A few tickets could possibly double the cost of your car insurance and send your auto insurance rates into the stratosphere.

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