An auto insurance applicant needs to bear a premium worth $800 on an average every year. Few individual factors leave a sharp impact on your insurance rates. The final rate is affected by a number of such risk factors. Instead of analyzing someone’s driving record, these factors help in determining risks.
Consider few key factors that help determine your premium rates:
This is one factor that helps all drivers to determine the policy cost. If the driving history of an individual projects accidents in the past, then he’s more likely to be part of such mishaps in the future. Insurers consider you to be a lesser risk if you haven’t been through such instances and may offer lesser premium as a natural outcome. Your insurance rates are bound to be affected by certain on-road infractions like that of speeding tickets. You might need to carry a special coverage if the driving history reflects a road mishap.
Your risk of being involved in an accident tends to increase when you spend more hours on the road. Your premium costs may prove to be higher when you cover long distances in your car. The risk element decreases in the eyes of the insurer when you drive the car for only once or twice. It has a positive impact on your premium rate. The insurance providers are known for seeking mileage each year.