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Today, drivers may be less inclined to “shop around” in regards to auto insurance coverage. Researching policies from assorted carriers is one of the best ways to lower your monthly rate, as is educating yourself on the factors contributing to higher premiums. There is more to reducing your rates than raising your deductibles and choosing lower coverage plans.

Top 5 Factors Affecting Auto Insurance Coverage Rates

1. Location

Your physical location has a significant impact on your premium. If you live in a high-traffic, densely populated area, your monthly rate will be higher due to an increased risk of accidents, injuries, and theft. Living in a rural community with a small population, in comparison, decreases premiums.

2. Age & Gender

insurance coverageVehicular accident rates are higher among men than women according to the Insurance Institute for Highway Safety, so men usually see premium increases. Accident rates are higher for both male and female drivers under the age of 25 and over the age of 75, resulting in higher premiums.

3. Driving Record

Good driving habits influence your auto insurance coverage. If you have a zero-accident record, you will probably not pay as much as someone who has been in several collisions over the last few years. And while getting in an accident increases your premium, it is possible to lower the rate over time with “clean,” or accident-free driving.

4. Credit Score

Many insurance companies review credit scores when they are creating premiums. The lower your score, the higher your rate will likely be. The only states that do not look at credit scores to determine premiums are Massachusetts, Hawaii, and California.

5. Profession

What you do for a living is another factor influencing your auto insurance coverage premium. If your work requires you to drive long distances every day, your accident rate and subsequently your premium is higher. Tell a prospective agency if you use your vehicle for commercial purposes to avoid a denied claim.

 

Additional factors affecting your auto insurance coverage include your marital status and the type of vehicle you drive. Affordable car insurance is one of several services available through Bob Shropshire Bail Bonds, the 24/7 bail service proudly serving Cincinnati, OH. Call (513) 721-3915 for immediate assistance or visit their website for more information.

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