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Understanding Personal Auto Insurance Factors

Every state mandates that an automobile be covered by insurance. The required minimums vary, but if you own a vehicle this is an unavoidable expense. Unlike your bank loan, the premiums you pay are not a fixed amount for the life of the vehicle. Several auto insurance factors come into play that may cause your costs to fluctuate. An explanation of two of the most common are below.

Your Driving Record

Let’s assume that when you got your original policy quote your driving record was stellar. This is monitored by insurance agencies to evaluate your level of risk. As soon as your record shifts in the negative direction you will start to pay more for coverage. Events that will have an effect are traffic tickets – especially moving violations – and accidents.

Type of Vehicle

If you have been driving the same car for the past six years and decide to upgrade, don’t be shocked to see your rates jump as well. Newer cars have more value and typically cost more to insure. There are other factors as well. Sedans, SUVs and sports cars will all have different premiums. Cars that have a history of theft will also have a negative impact.

Personal auto insurance costs take numerous elements into account. Talk to a professional about the cars in your garage and the drivers in your home and they can help you find a policy that’s right for you.