What Factors Determine The Price Of Your Auto Insurance?
Updated: Feb 14
Many factors can affect your yearly auto insurance premium and they’re all based on how likely you are to get into an accident. Currently, the average annual cost of auto insurance in Arizona is $1,222, but this number can vary greatly depending on several factors. Let’s get into detail about what determines how much you pay for you premium:
1. Your Driving Record and Claim History:
This is the most obvious as well as the most important factor. Getting into several accidents gives your insurance company reason to believe there’s a greater chance that you will get into another one. The cleaner your driving record, the less you pay.
2. How much you drive:
It’s a given that the more you drive your vehicle, the greater risk of an accident. If you drive your car a long distance to work every day you will pay more than someone who drives around town once a week.
Young, inexperienced drivers are considered more likely to be involved in a car accident. Drivers under the age of 25 typically pay more for their insurance than those over 25.
Women generally pay less for their car insurance than men. Statistics show that men are more like to exhibit risky driving behavior, (receiving more tickets, more accidents, more DUIs) and therefore are more likely to get an in accident.
5. Marital status:
Married people are considered to be less likely to get into an accident than single adults.
Married people tend to pay less for their premium than single people.
6. Where you live:
Living and parking your car in an urban area where an accident or theft is more likely results in higher rates than someone who lives in a more rural area.
7. Your Car:
Driving a car with a high safety rating means that there is a smaller chance that you will be injured in the event of an accident and a smaller chance that your insurance will need to pay for your medical bills.
8. Credit: Many companies look at your credit score when determining how much you pay for your premium.
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AZ Insurance Team