Factors That Affect Auto Insurance Costs

People sometimes wonder, what affects auto insurance rates? We have compiled a few of the more influential factors that is used to compute your car insurance rates.

Driving Record

Insurance companies will look at driving records to find any at points, fault accidents, moving traffic violations and claims made. They usually look at the past 4 years. The more speeding tickets a person has received, the higher the auto insurance costs.

Previous Auto Insurance

An auto insurance company will look at your past insurance coverage and see how many claims you have filed as well as whether or not the premiums were paid on time or not. Someone with a lot more claims will have to pay more to insure their vehicle.

Credit History Affects Insurance Rates

Over 90% of all insurance companies are using a person's credit history to factor in their pricing for auto insurance. Studies have shown that people with worse credit tend to file more claims against insurance companies.

Location of Residence

Cars in metropolitan areas are more prone to theft, accidents and vandalism than cars in more rural small towns. So someone looking in Portland, Maine will end up paying more than someone living in a small town 1 hour from Augusta.

Type of Car

Sports cars will cost more to insure than a family van. A few reasons can be attributed to certain types of cars costing more to insure. First, someone driving a sports car is more likely to speed and drive recklessly than someone driving a mini-van. Another reason is that a BMW 5 series will cost more to replace than a Honda Accord.

Educate Yourself

Learn about the various factors that affects your auto insurance rates and you will be able to adjust your lifestyle to save money over time. Shop around between a few car insurance companies in Maine and see who offers the best deal.