The agents at Smallwood Insurance have years of experience working with Maryland drivers to find the policy that fits their unique needs. Whether you’re a new driver, or want to switch policies, you may be wondering how much car insurance will cost. So let’s take a closer look at the most common factors that impact what you’re paying for auto insurance.
Risk
In a sense, everything in insurance revolves around risk. It’s the one unifying thread that runs through the factors discussed below. Those with lower risk will pay less on their insurance. Once you understand risk factors, you can find ways to work around some of them through commonsense methods like safer driving, anti-theft systems, and other factors that let your insurer know you’re serious about limiting your exposure.
Driving Record
Speeding tickets, traffic violations, and accidents will mean higher premiums. Keep a clean driving record and you’ll pay less. One reason newer drivers pay more is because they haven’t yet established a driving history.
Mileage
If you’re not in a vehicle, you’re much less likely to get into an accident. The more you drive, the more that chance goes up. Those who drive less pay less.
Location
If you live in Baltimore, you’re going to pay more than if you live in Annapolis or Mount Airy. That’s because accidents and a higher incidence of theft and vandalism in urban areas increases insurance claims, which in turn increases your prices. Other location-dependent factors, like weather, medical costs, and rates of insurance fraud will also influence your premiums.
Age
Older drivers are, generally, careful drivers. They have fewer accidents, and so pay less for insurance. However, if a new driver or a driver below the age of 25 also drives the car, even a mature driver may pay more.
Gender
Sorry, guys. Women get into fewer accidents, have less severe accidents when they do happen, and are less prone to get DUIs than men. Because of that, their premiums are lower.
Your Car
The car you drive will be a major determinant of insurance cost. A car with a higher value costs more to insure. So, too, does one that’s desirable to thieves, or one that’s likely to cause extensive damage if it’s in an accident. On the other hand, active safety features, anti-theft measures, or an older vehicle can all lower your premiums.
Your Credit
You may be the world’s most careful driver and a model citizen, but if your credit has taken some serious hits your insurer may assume your car could end up looking worse than your Experian score. That’s because lower credit is often correlated with higher claim costs.
Policy Types
Different drivers have different insurance needs, but one thing holds true regardless of any other factor listed above, and is common to other kinds of coverage like motorcycle insurance and ATV insurance. More insurance — additional policies, higher-dollar coverage, and policies with lower deductibles — leads to more cost.
Factors That Don’t Impact Insurance Prices
Having looked at the things that can raise your insurance rates, it’s worth a brief mention of two things that will not. Insurance requirements and rates can vary from one state to another, and from one city to another within a state. Two things are invariable: your race and religion may not be used to determine your eligibility for, or the cost of, auto insurance.
Saving Money on Auto Insurance
The list above contains some things that are difficult for the average person to control. That doesn’t mean you can’t find ways to save on accident insurance. In order to do it the right way, speak to our insurance agents. An auto insurance quote from Smallwood Insurance can be augmented with sound advice that can save you money no matter where life finds you.
