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Have you ever wondered why car insurance rates vary so much from one person to the next or how your quotes are calculated when shopping for coverage? Providers take into account several factors to determine a driver’s risk. According to the professionals at Edwards Insurance Agency, who assist Sparta, WI, residents satisfy all their coverage needs, knowing what affects premiums will help you get the best deal possible. Below, they reveal some of the top factors that influence the price of your policy.

What Determines Car Insurance Rates?

1. Driving Record

Your driving record plays one of the biggest roles in establishing how much your car insurance is. If you have a history of traffic violations or at-fault accidents, you can expect to pay quite a bit more than someone with a clean record.

2. Amount of Coverage

Though you may only be required to purchase liability insurance, there are many other types of coverage to consider adding to your policy for more protection. After putting together your full plan, your premium is priced according to the amount of coverage, limits, and deductibles you select.

3. Credit Score

car insuranceInsurance companies carefully review your credit score. Typically, they view drivers with higher ratings as more responsible and less likely to file a claim. In turn, better numbers are often rewarded with lower rates.

4. Age, Gender, & Marital Status

Providers look at statistics surrounding age, gender, and marital status to see which drivers in these categories have the highest risk of getting into an accident. As such, they usually offer reduced premiums to those who are older with more experience on the road, females, and married individuals.

5. Location

Where you reside also plays a role in calculating your policy price. If you live in a neighborhood with bloated theft, vandalism, and accident rates, there’s a good chance you will see this reflected in a higher premium.

While you can’t control all these elements, you can improve upon some to gain a better rate. Understanding which factors impact how much you pay for car insurance allows you to maximize your savings wherever possible. To discuss your best options, turn to Edwards Insurance Agency. Their expert team boasts nearly a century of experience and is well-qualified to find the perfect package that suits your budget. Call (608) 269-4512 to request a quote, or visit them online to learn more about what they offer.

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