Q:Question I have a good driving record, but is that the only thing insurance companies consider when they decide what to charge for auto coverage? 

Karen Caldwell is a Farmers Insurance^® agent in Fairfield, Ohio. Here, she discusses the many factors that go into auto insurance pricing.

A:Answer What you pay for auto insurance depends on several factors, including your driving record and where you garage your car. Obviously, your driving record matters a great deal. Traffic tickets and prior auto accidents correlate with a greater chance of a future loss, and their presence on your record can result in higher premiums. In general, the fewer accidents and traffic violations in your past, the less you will pay for auto insurance.

Where you garage your car is also very important. Some areas are more densely populated, which can increase the risk of an accident or other cause of loss — such as theft or vandalism.      

Does my credit score matter?

In most states, insurers also consider your credit history as one factor in determining your insurance premium. That might not seem relevant, but there’s actually a high correlation between certain elements of your credit history and how likely you are to have an insurance claim. In general, maintaining good credit can help save you money on auto insurance in most states.

Finally, insurers may take into account your age, gender and marital status when calculating your premium. This information helps insurers develop a premium that accurately reflects your risk of loss.  

How can I save on my auto insurance?

At Farmers, we offer multi-policy discounts for certain types of policies. The more policies you have with us, the greater the discount may be. Many customers choose Farmers for their auto, home and life insurance so they can take advantage of multi-policy discounts. We also insure other types of vehicles in your household, like boats, travel trailers and ATVs.

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