Auto insurance coverage premiums are calculated based on a number of factors including certain lifestyle choices you make like where you live and the type of car you drive. You also have the option of purchasing cheaper coverage that fits within your budget. While some of these determining factors are within the realm of your control, other factors affecting auto insurance premiums like your age and gender aren’t. Saving money is a top priority for a lot of Arlington, Texas residents, but the best way to reduce your auto insurance premiums is to understand the full picture.
Here are six factors that affect your auto insurance premiums in Arlington.
Age and Gender
Statistics show that young men in their late teens to early 20s typically pay higher premiums than their female counterparts because they’re more likely to get into minor or injury-causing accidents. Since this is a bigger risk for insurance companies to take on, their premiums are almost automatically higher. Older or middle-aged women, on the other hand, tend to pay higher insurance premiums than middle-aged men for the same reason.
Your Regional Location
Your primary residence also has an impact on your insurance premiums. The average auto insurance premium in Arlington is about $934.22 per year, which works out to $77.85 per month. Compare that to the annual average in the state of Texas of about $1,823 ($152 per month) and the national average which is about $1,785 per month. Regional factors that impact car insurance premiums include likelihood of natural disasters, crime rates, demographics, and population density. The bigger the population in the area, the more drivers there are on the road and that means that the potential for accidents or vehicular damage also increases.
Your credit score signifies your relationship with debt and is therefore used to determine how well you manage your finances. A low credit score could deter some insurance companies from offering you coverage because of the higher risk that you’ll default on payments. Insurance companies use your credit score to assess the risk potential of taking you on as a client. If you’re considered a high-risk consumer, then your insurance premiums will be higher.
Your driving record indicates how responsible you are as a driver and how much of a risk you are to your policy provider. A clean driving record generally translates to lower insurance rates, especially for older adults. Where you frequently drive to also matters because certain areas are higher risk for car thefts, break-ins, and accidents.
Car Make, Model, and Age
Everything from the safety rating to the make, model, age, size, and value of your vehicle can impact your auto insurance rates. The more valuable your car is and the more equipped it is with the latest gadgets, the more likely it is to get stolen. The older your car is, the more it’s going to need repairs and part replacements, the cost of which can add up fast and even pose some potentially serious safety risks if ignored.
Type and Amount of Coverage
Of course, the type and amount of coverage you require also makes a difference. Your car insurance premiums will vary depending on whether you’re single or have a family as well as the average distance you drive on a daily basis.
Looking for a qualified Farmers car insurance agent in Arlington, Texas?
Farmers Insurance – Crystal Schuder Agency can help you find the right car insurance for the right price. We’ll take the time to understand your specific needs and work within your budget to come up with a feasible insurance policy for you. Book a consultation today!