5 Factors Affecting Your Car Insurance Rates In 2022

​Today, auto insurance is essential because it protects your finances and your well-being. However, several factors determine your car insurance rates. Continue reading to learn more about them.

1. Levels of Insurance Coverage
   When calculating auto insurance rates, the level of insurance coverage is the main determining factor. Choosing a higher level of coverage can raise insurance costs. Contrastingly, choosing a lower level of insurance coverage for a lesser cost can increase risk. Insurance coverage includes collision, uninsured motorists, liabilities, or comprehensive coverage. 
   
   
2. Amount of Your Deductible
   The price of your deductible also determines your car insurance rates. You can choose between a high-deductible policy or a low-deductible policy. Choosing a high-deductible policy will cost you much less monthly than a low-deductible policy with higher monthly rates.
   
   
3. History of Driving and Insurance Claims
   Having a clean driving history can score you the lowest insurance rates. Auto insurance offers a safe-driver discount promo that could reduce the cost of your policy by 40%. In relation, drivers with recurring insurance claims will most likely file a claim in the future. Thus, drivers with a repeated history of high-risk traffic violations and multiple insurance claims will have higher insurance rates. 
   
   
4. Car Make and Model 
   Insurers use the car’s make and model to determine how much it costs, which will help them estimate the money they have to pay if the car is totaled and they have to replace it. Flashy and expensive cars usually have to pay higher rates. Correspondingly, the higher the auto’s mileage and commuting distance are directly proportional to insurance rates. 
   
   
5. Demographics
   A driver’s demographics affect car insurance rates. Insurers use statistical modeling to determine which demographics are more likely to lead to bigger claims and set rates accordingly. The following demographics can affect insurance rates.

• Age
• Gender
• Marital status

Conclusion
Auto insurance can save lives. Despite the changing rates and higher risks of car accidents due to the current circumstances, there are ways to protect the driver and the driver’s loved ones and surroundings. 

At Schneiderman Insurance Agency, we put our clients first by offering them policies you can afford. Learn more about our products and services by calling our agency at (818) 322-4744. You can request a free quote by CLICKING HERE. Any coverage discussed is not guaranteed. Contact us today to go over your specific needs and we are happy to help you find a policy that works for you and your budget!