What Factors Affect Your Auto Insurance Quotes? from Alina Mark's blog

While comparing auto insurance quotes, you should always keep in mind that insurers take several key factors into account when setting your price. No wonder it is important for motorists to be aware that the costs they pay are determined by different criteria.

This explains why no two auto insurance quotes will ever be the same even if you decide to share similar information. Having said that, below are some of the common factors that affect your auto insurance quotes.

Where You Live

Auto insurance coverage tends to be more expensive in some states that others. If you reside in a state, town or city with high theft cases, or traffic, then you should expect to pay more for your auto insurance premium. While drivers can do little about where they live, it is always important to realize that motorists in areas where the accident risk is lower will pay less.

Who You Are

Car insurance companies ask for age, gender, and marital status to see how likely a person is to make a claim. They collect detailed data on accidents as per age and gender to understand the risk of providing coverage. Some people, such as younger drivers and male drivers, considered as an overall group, get into more accidents. They also tend to get higher auto insurance quotes since insurers believer they are riskier to insure.

Homeownership Impact on Car Insurance Costs

Homeownership can at times reduce car insurance costs. Insurance companies may see homeowners as more financially stable and more risk averse, which can result in lower premiums. Homeowners also have the chance to bundle coverage, buying home and car insurance together. This could result in a discount that reduces policy premiums.

How You Drive

Your personal driving history will also come into play when requesting auto insurance quotes.  If you have a clean driving record, you’re more likely to get cheap car insurance quotes. Things are somehow different if having a history of at-fault accidents that led to insurance claim payouts since you’ll end up paying more on your policy.