Consider These Factors
When Shopping for Car Insurance

Auto insurance is a requirement for all drivers in New York State. You cannot register your vehicle without it and face penalties if caught driving without insurance. However, we all have limited monthly budgets and car insurance can take a big chunk of that budget. By understanding the factors that impact the cost of auto insurance, you can make an informed decision when purchasing it. In this blog post, we will discuss the key factors that all insurance companies consider when providing you with an insurance quote.

Age and Driving Experience

Age and driving experience are one of the primary factors considered by insurance providers. Younger drivers who are less experienced are considered a higher risk than older, more experienced drivers according to national statistics. 

Driving Record

Your driving record is another driving factor in your auto insurance premiums. If you have a clean driving record, you will enjoy lower insurance premiums. However, a history of car accidents, traffic tickets, and insurance claims will result in higher insurance premiums. 

Vehicle Type and Value

As one might suspect, the type and value of the car you drive impact your auto insurance rates. Cars that cost more to fix or replace such as luxury brands like BMW and Mercedes cost more to insure. Additionally, performance vehicles are also associated with higher insurance costs.

Location and Usage

The geographic location of where you work and live plays a role in your insurance premiums too. If you live in a bustling area that has a higher rate of accidents, theft, and vandalism, your rates will be higher. More rural areas with fewer people and accidents tend to have lower rates.

Credit History

Your credit score is indicative of your financial risk to companies and your likelihood that you pay them on time. The better your credit score and credit history are, the lower your car insurance rates will be. On the other side, if you have a lower credit score and poor history, your rates will be higher.

Coverage and Deductibles

The level of coverage you choose and the deductibles you select can impact your insurance premiums. Higher coverage limits and lower deductibles typically result in higher premiums, as they provide more financial protection in the event of an accident or claim. On the other hand, opting for lower coverage limits and higher deductibles can help lower your insurance costs, but it also means you will have more out-of-pocket expenses in the event of a claim.