Katy Auto Insurance

How Much Does Car Insurance Cost?

Insurance companies use a process called underwriting to decide whether to sell you a policy and how much to charge you. The amount you pay each month for insurance is called a premium.

Several factors impact your premium for car insurance. Having a basic understanding of them can help simplify what can be a complicated process. Some of the most important factors include:

• Vehicle Location: The area where you drive plays a big role in insurance premiums. Some neighborhoods, cities, and states have higher insurance premiums than others.
• Vehicle Size: Large vehicles tend to cost less to insure than small vehicles because they suffer less damage in auto accidents.
• Vehicle Performance: High-performance vehicles (like sports cars) tend to be driven more aggressively and statistically end up in more accidents, thus, resulting in higher insurance costs.
• Vehicle Age and Value: Newer, more expensive cars tend to cost more to insure than their older, less expensive counterparts.
• Vehicle Features: Added safety features such as anti-lock brakes, anti-theft devices, and airbags can lower car insurance rates.
• Driver’s Age and Profile: Drivers under the age of twenty-five are statistically more likely to be in accidents than older drivers, so their rates are typically higher. Additionally, male drivers under twenty-five tend to have higher insurance rates than females of the same age.
• Driver’s Record: Drivers with past claims are more likely to file future claims. Their insurance rates tend to skew higher than drivers with no claims. Additionally, drivers with moving violations or accidents will typically be charged higher rates.
• Credit Score: Higher credit usually means a lower premium.

Read more about how to lower your car insurance bill here and Call Texan to get a car insurance quote.

Good Credit = More Savings