What Determines Your Auto Insurance Premiums?

gear change lever

Contributing Factors to Auto Insurance Premiums

Auto insurance is a necessary expense if you own a car, but it does not have to be the most expensive bill you have each month. There are many factors that contribute to your auto insurance premiums, which can either raise or lower the cost. Some of the biggest factors contributing to your auto insurance premiums, include:

  • Coverage options – the more coverage options that you add on to your auto insurance policy the better coverage you will have and the more you will pay. Make sure to consider how much coverage you really need so that you are not paying extra for unnecessary coverage.
  • Deductibles – the higher your deductible, the less you will have to pay each month. However, keep in mind that the higher your deductible is, the more you will have to pay out of your pocket if you ever make a claim.
  • Your car – the type of car you drive has a large impact on how much you will pay for your auto insurance. The more safety features that your car has, the less you will have to pay each month.
  • Where you drive – if you tend to drive in areas that have higher theft and vandalism rates, such as urban areas, you will pay more for auto insurance than if you lived in a more rural area.
  • Your driving record – if you have a clean driving record that does not have any tickets or accidents, you will be rewarded with lower auto insurance premiums.
  • Your age – drivers under 25 tend to have higher accident rates than older drivers, which means they will pay more for their auto insurance premiums.

Contact the insurance professionals at Prutting Insurance Group in Scottsdale, Arizona for all of your auto insurance needs. We will work with you to ensure that you have the right coverage all at the right price.