Home » Common Factors That Impact the Cost of Auto Insurance
September 13, 2017

Common Factors That Impact the Cost of Auto Insurance

Car with blurry backgroundMany different factors play a part in determining auto insurance rates. The most obvious factor is the level of coverage a driver desires. Those who desire extensive auto insurance coverage might pay a higher monthly premium. Those who desire low monthly premiums may likely have a comparably high deductible.

Yet, these are not the only factors that determine the cost of auto insurance. Let’s take a look at other variables that influence auto insurance rates.

Defensive Driving

Complete a defensive driving course and your car insurance rate might not be as costly. These courses can help drivers get the skills they need to remain vigilant on the road. Most auto insurers lower car insurance premiums for those who complete accident prevention courses.

Driving History

A driver without a considerable number of accidents or tickets may pay a low auto insurance rate. Drivers who have many accidents on their record will likely pay a higher insurance rate.

The Type of Vehicle

A brand new luxury sedan with high-tech features and an upscale interior is more expensive to insure than an old vehicle with minimal niceties. The auto insurer will have to spend more money on a claim for an expensive vehicle that a thief steals. Alternatively, repairing or replacing an older vehicle will likely be much cheaper.

Furthermore, driving a vehicle with excellent safety ratings will prove cheaper to insure. The same is true of a vehicle with a low likelihood of theft. Do your research when buying a car. Many consumer research firms monitor the theft risks attached to different cars.

The Type of Driving

An individual who works from home and rarely uses his vehicle probably won’t pay as much for auto insurance as someone who has an hour-long commute to and from work. This is due to the fact that there is a greater chance for an auto accident or traffic ticket if the driver spends a considerable amount of time driving each day. Most auto insurers ask their drivers how they intend to use their cars. Always be honest when explaining your usage.


Location is an important factor in the context of auto insurance. Certain zip codes have high or low insurance rates based on the amount of crime in the area.

Consider this factor from the auto insurer’s point of view. An insurer may charge more to vehicle owners in dangerous areas as there is a greater chance of theft. Certain high-density areas have higher accident rates. These busy areas usually have higher car insurance rates compared to less populous spaces.

Need auto insurance? We’ve got you covered. Call Pan American Insurance at (915) 562-0009 for a fast, free El Paso auto insurance quote today.

Categories: Blog

Tags: auto insurance, costs impacting premiums, el paso, insurance, texas

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