What Do Insurers Look at When Preparing a Car Insurance Quote?

When you request a car insurance quote, insurers evaluate several key factors to determine your premium.

Your agent can help you understand how information about you, your driving record, your vehicle and your coverage may impact your car insurance premiums.

Insurers may evaluate the following when setting auto insurance prices:

• Traffic violations—Speeding tickets and other infractions can increase your premium.

• Accidents—A history of at-fault accidents suggests higher risk and can lead to higher rates.

• Claims history—Frequent insurance claims can also raise your premiums, as they indicate a higher likelihood of future claims.

• Credit score—Texas insurers are legally allowed to use your credit score as a factor when determining the likelihood that you may file a claim in the future.

• Age—Younger drivers, particularly teens and those in their early twenties, often face higher premiums due to their inexperience.

• Urban vs. rural—Urban areas typically have higher premiums due to increased traffic, higher risk of theft and more accidents compared to rural areas.

• Make and model—High-performance or luxury vehicles often cost more to insure due to their higher repair costs and increased likelihood of theft.

• Age of vehicle—Newer cars might have higher premiums due to their higher replacement costs.

• Safety features—Vehicles equipped with advanced safety features may qualify for discounts.

How Your Chosen Auto Coverage Affects Premiums

The type and amount of coverage and the deductibles you select significantly impact your quote in the following ways:

• Liability coverage may help pay for third-party accident-related damages up to the policy’s limits but does not cover your vehicle. Increasing coverage limits will raise your premium.

• Comprehensive and collision coverage may help cover damages to your vehicle in various situations.

• Optional add-ons, like rental car reimbursement or roadside assistance, can increase your premium.

• Higher deductibles generally lower your monthly premium because you are assuming more of the risk.

• Lower deductibles typically increase your premium but also reduce your financial responsibility in the event of a claim.

Contact Us for a Personalized Car Insurance Quote

Contact Cinco Seguros in Dallas, Texas, for a personalized car insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.