Not sure how car insurance quotes are determined? Car insurance rates can often feel random, especially if you feel like you’re paying more for the same car as your neighbors have. However, vehicle insurance rates are determined by calculating several different factors.
Understanding the variables involved in car insurance quotes can give you more knowledge of your coverage and potentially find ways to reduce your expenses.
At Mark Ismail Insurance Agency, we’re an AAA-approved insurance agency. We offer free car insurance quotes in Westland, MI, and the surrounding areas, through AAA insurance. Contact us today to learn more.
7 Factors that Determine Car Insurance Quotes
From the type of car you drive to your annual mileage and claims history, there are several factors that influence your premium. Knowing how your car insurance quotes are calculated can help you avoid frustration or suspicions of overpaying.
1. Record & Claims History
Your past claims history and overall driving record are the most important factors for determining your car insurance quotes and possible rates. Insurers will look at all your past traffic violations, even if you don’t have any accidents.
Tickets for speeding or reckless driving are considered, as well as whether you’ve had any at-fault accidents in the past 3 to 5 years. The cleaner your record is, the lower your car insurance quotes will be.
2. Insurance Score
Many states use a predictive score that predicts the likelihood of you filing an insurance claim. In Michigan, the laws around these scores are complex.
While insurance companies can’t use them to deny or cancel your policy, they can use it to calculate rates. A higher score is better, and usually means lower insurance premiums.
3. Driving Experience & Age’
Experience and age play a key role in your car insurance quotes. For example, teen drivers or those under 25 usually pay more expensive rates because they have higher chances of accidents.
After 25, rates decrease again, though they may increase again for seniors.
4. Prior Coverage
Having a history of continuous coverage shows insurers that you are responsible. As a result, they’re likely to give you lower car insurance quotes.
A lapse in coverage, on the other hand, can lead to higher premiums. This is the case even if the lapse was brief.
5. Zip Code
Your location also influences your car insurance rates. Premiums can vary significantly from zip code to zip code, depending on factors such as:
- Local car theft and vandalism rates
- Traffic density
- Accident rates
- Local auto repair costs
- Local medical service costs
6. Vehicle Type
The year, make, and model of your vehicle affects car insurance quotes in a few ways. First, it helps insurers understand the cost of repairs if the car is damaged.
Knowing the vehicle type also gives them an idea of whether or not it’s a type of car with a high theft frequency. Lastly, insurers can check the car’s safety rating to see how well it protects you as the driver.
7. Annual Mileage
The more miles you drive, the higher your risk of an accident. Drivers with higher annual mileage of 12,000 or more miles often pay more than those who drive their cars less.
Contact Us for the Best Car Insurance Quotes For You
If you want car insurance quotes for policies that fit your needs and budget, consider working with our team at Mark Ismail Insurance Agency.
We’re part of the AAA network, delivering several services through the company. Aside from car insurance quotes, you can get policies for homeowners insurance, renters insurance, life insurance, and more.
As a locally-based insurance agent, we understand the needs of the community in Westland, MI, and the surrounding areas. You can trust us to put your best interests first, and provide you with high-quality service.
Want to get your own car insurance quotes from AAA? Call (734) 742-5650, or contact us online to get started today.