As an agent, there has been more than one time I have quoted a new car that someone has just purchased to hear the above phrase. Do you know what is all factored into the price you pay for your car insurance? Here are a few things, some you can control, others you can’t.

GENDER- Men typically pay more for car insurance. Men are more likely to get DUI’s and have more serious accidents and insurance companies know this.

AGE- If you are under 25, you are going to pay more for car insurance as anyone with a newly turned 16-year-old driver will attest! Again, boys under 25 pay more than girls as boys tend to take more risks behind the wheel at this age. If you are over 80, you are going to pay more for auto insurance. Statics show that people over 80 have more incidents of accidents.

CREDIT-Like it or not, insurance companies run a credit score on you prior to purchasing insurance and typically at renewals. The better your credit score, the lower your insurance.

MVR- Motor Vehicle Record- Probably the biggest influence on auto insurance pricing that you can control is your driving record. Insurance companies look at your record for the last 3-5 years and rate for EACH incident you have. The more the company pays out, the more they rate. The more violations, the more they charge. Many companies are moving in the direction of two at fault accidents could equal a non-renewal of insurance. Once this happens, it can be very difficult to find coverage, especially affordable coverage. If you want to see your insurance premium rise quickly, see what happens after an at-fault accident.

LOCATION-Rural areas typically have a lower premium. City crime rates can have a lot to do with rates, especially if there is a lot of vehicle theft. Typically, rural areas have a much lower incident of accidents versus cities and therefore pricing for this is reflected. More often than not, we find a Vinton zip code is less than a Cedar Rapids/Des Moines zip code all other factors being equal.

TYPE OF CAR-This is another big one you can control. The age and size of your vehicle makes a big difference. A 4-Wheel drive is always going to cost more than a car without it to fix; it weighs more and can cause more damage which means you are going to pay more for it. Safety ratings are factored in and the higher the safety ratings, the better the deal on your premium. The larger the engine size- the faster your car can go which means the premium is going to go up with the speed of the car.

There are numerous factors and lots of research studies conducted by insurance companies that guide them on how to rate for you and your vehicle. Remember, you can control your driving record, type of vehicle, credit and location. Your age and gender you are stuck with. The biggest tip I can give you is ALWAYS call your agent before you make a purchase and get a quote to make sure you can afford the car you are wanting to purchase.

Most car insurance companies tell us rates in general are going up due to the large number of accidents caused by distracted driving. Do your part to keep insurance rates lower by never texting and driving! Make the pledge to your family today to be focused on the road when behind the wheel. Your family and friends will appreciate this when you are able to walk through the door again.

As always, I am more than happy to give you a quote. Stop by and see me.