Auto insurance is mandatory in different states, but your pay rates differ significantly. Indeed, understanding the criteria that insurers use to determine these rates is tricky. Many variables come to play, and your zip code, age, credit score, or gender greatly influences your premiums.

Even though insurance companies don't use a template to calculate rates, you must know critical aspects of auto insurance costs. This way, you'll identify and settle on the best deals for your car's policy.

1. Your Driving Record

As a budding or seasoned driver, your history on the road has a bearing on your auto insurance rates. Your insurer perceives you as a high-risk client if reckless driving, DUI, road rage, and traffic violations feature on your driving history. As such, they increase your rates. On the other hand, if your recent history indicates meticulous driving habits, you'll qualify for reduced premium rates. Indeed, accident-free driving earns you claims-free and safe driving discounts as well.

2. Your Vehicle

Believe it or not, the vehicle you own determines the auto insurance amount you'll pay. For instance, if you drive a premium car model, you'll pay steep premiums since it costs more to repair expensive cars. Some brands are favorites with car thieves and come with high rates. In addition, vehicles that require hard-to-find parts or are prone to damage attract high rates.

Other models with intelligent security features, trackers, or immobilizers don't strain your finances when paying your monthly premiums. Eventually, insurance companies assess your vehicle's capacity to damage others in a wreck. If it features bumpers that may cause extreme damage on impact, you'll pay more.

3. Your Location

Your location or neighborhood greatly affects your auto insurance rate. In some jurisdictions, drivers are more prone to cause accidents. In other places, car theft, vandalism, and natural disasters contribute to increasing policy fees. If you live in a busy city, your rates spike compared to a motorist's in a small rural town.

4. Your Insurance And Claims History

Potential insurers will charge you more if you've driven for long durations without auto insurance. Also, if your insurance claims history spooks your insurers, your rates will increase. Often, insurers believe you'll make unnecessary claims like before, and it isn't good for business. Likewise, maintaining a consistent and clean coverage history builds trust with your insurer, and you enjoy lower premiums.

Qualifying for lenient auto insurance rates helps you consolidate your car's maintenance budget. Contact a reputable insurance agency in your area to find car insurance rates and discounts.