Factors that Determine Car Insurance Rates

There are a number of factors that affect your auto insurance rate.  Some of the most influential factors are described below:

• Credit Score—The national average credit score is 675, how does yours compare?  Your credit score can be a determining factor in your Texas car insurance rate.  Insurance companies take this factor into account because it demonstrates your financial responsibility.  However, insurance agents may not reject your insurance application solely on your credit score.

• Your Record and Past Claims—Your driving record plays a role in determining your auto insurance rate too.  If you have tickets or accidents on your driving record, your rate may be higher. 

• Age and Gender—Men under the age 25 and women who are not married and under the age of 21 generally receive higher insurance rates.  Seniors over the age of 50 often have lower rates.

• Location—Your insurance rate may also be effected based on where you store and drive your vehicle.  People who drive and live in areas where their type of vehicle is targeted in theft may have a higher rate because of the risk factor associated with their automobile.  People in urban areas usually pay higher rates than people in rural areas.

• Time Behind the Wheel—People who drive their car frequently, especially people who drive their car to and from, and/or during work, may have higher insurance rates.

• Your Car—If you have a luxury car, your collision and comprehensive insurance rates will be higher. 

• Uninsured Driving Incidents—If you have driven your uninsured car for more than thirty days in the year before you apply for insurance with a new agency, that agency may charge you higher rates.

• Good Driver—If you have a history of good driving judgment (not tickets, etc.) you may qualify for a Good Driver Discount that will lower your insurance rate. 

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