What Factors Into the Price of Car Insurance?

In breaking down the automotive insurance market, there are multiple factors at play that may drive costs either up or down. If you are unfamiliar with the ways insurance companies operate, their decisions may seem puzzling when you receive your policy proposal. The following factors should be considered before committing to a policy price long term.

Car Age, Quality, and Safety

While you may find it appealing to own a brand-new vehicle, it simply has fewer market data points to determine whether or not it is safe and contributes to safe driving habits. An older model will have a proven track record and can more easily be evaluated. A similar philosophy holds when considering how expensive it is to maintain and repair a car. Vehicles that have been on the road longer provide insurance companies with a wider understanding of how they operate. Additionally, if a vehicle has a great safety rating, it will likely cost you less to insure that car.

Driving History

Though it may feel unfair to drivers, insurance companies believe your past performance indicates future driving habits. If you have accidents, speeding tickets, and other violations on your record, it will factor into your auto insurance policy payment. The amount of time you spend in your car also plays a role in the cost of your policy. If you cover a minimal amount of miles every week, you’re likely to see a lower number when the bill comes due.

Other Contributing Factors

Believe it or not, your credit score may come into play. Insurance companies believe good credit is linked to safe driving. Age, sex, and marital status can also affect the amount of money you can expect to pay. Young people, men, and single people will see higher premiums. Where you live can also cause premium prices to fluctuate. If you live in a city shown to have poor driving habits or more car thefts, expect to pay more on your car insurance overall.

At Focus1 Insurance Group, we understand the financial burdens attached to car insurance. Though insurance is a necessity, it can be a tough field to navigate alone. Our dedicated team of agents is committed to finding you the best policy they can. If you’re interested in learning more about the automotive insurance options available to you in Oregon, request your free quote today.