Factors Affecting the Cost of Auto Insurance

Auto insurance rates vary from one driver to the next, even among neighbors carrying identical coverage. Our team at Goggans Insurance works with drivers in Fort Payne, AL to review the factors behind their premiums.

What Impacts Your Auto Insurance Premium?

Insurers look at a combination of factors to determine how much risk you represent as a driver. The most common include:

• Driving record—This includes at-fault accidents, speeding tickets and other violations.
• Age and experience—Newer drivers tend to pay more because crash risk is statistically higher.
• Vehicle type—Sports cars and luxury SUVs typically cost more to insure than standard sedans, as repairs run higher.
• Annual mileage—More time on the road can mean greater exposure to accidents.
• Credit-based insurance score—This may be used as a pricing factor in many states, with stronger scores often correlating to lower premiums.
• Coverage selections and deductibles—Higher deductibles may lower your premium, while optional coverages may raise it.

How Much Auto Insurance Should You Carry?

Minimum limits required by law exist as a legal baseline, but they rarely reflect your insurance needs. If you cause an accident resulting in serious injuries or significant property damage, minimum limits may leave you personally exposed to costs your policy may not cover. Carrying higher liability limits and adding coverage such as comprehensive, collision or uninsured/underinsured motorist coverage can offer broader financial protection. The right amount depends on your assets, your vehicle’s value and how you use your car.

Learn More

Your premium is the result of multiple variables, including aspects within your control. Small changes, such as updating your mileage, completing a defensive driving course or bundling policies, can shift your rate over time. Contact Goggans Insurance to review your current auto insurance coverage and discuss whether your policy still fits your needs.

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.