Top 5 Factors That Affect Your Auto Insurance Coverage

Insurance companies incorporate a myriad of factors when determining the cost of auto
insurance. The fewer risk factors an individual has, the less their insurance will cost. Insurers
can utilize everything from gender, marital status, insurance history, coverage level, and type of
vehicle being insured. Insurance rates can vary widely among insurers for the same coverage,
but some factors weigh more heavily than others.
Age
Younger drivers have less experience and are statistically more prone to risk taking. Insurers
take age very seriously. Younger drivers can pay as much as $5,500 more per year than those 50
and over. Males pay higher rates than females.
Driving/Claim Record
A good driving record and the number of claims a driver has filed go hand-in-hand. Those who
have received tickets are a bigger risk and insurers use past behavior as an indicator of future
behavior. That includes the number of claims that have been filed, even if the individual wasn’t
at fault.
Credit Rating
Insurance company statistics indicate that people with a higher credit score file fewer claims.
Another statistic shows that those with a poorer credit rating file more expensive claims.
Drivers with a good driving record and better credit rating can pay up to $1,500 less per year.
Mileage
The less mileage a person racks up each year means fewer chances for an accident. It’s just one
of the reasons why older drivers don’t pay as much – they travel less. In the past, insurers
expected people to drive a maximum of 15,000 miles per year. Now, insurers expect drivers to
travel an average of 7,500 miles per year or less.
Location
The state and zip code where a driver lives is also part of the equation. It tells insurers where
insurance is mandatory and if the cost of unlimited coverage can be passed on to consumers.
Drivers living in zip codes that are prone to crime, flooding, forest fires and other natural
disasters will pay higher premiums.

For more information about how The Sena Group can help you with any

of your insurance needs, please contact us at 561-391-4661.

We can be found on Social Media at the following links.

The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487