Ever wonder how auto insurance companies determine how much you’ll pay for auto insurance? Here are some factors insurance companies use to determine your auto insurance premium:

Gaps in coverage
Many insurance companies look at your auto insurance history to help them determine the kind of driver you are and the risk involved in insuring you. Generally, auto insurance companies consider drivers with gaps in their auto insurance coverage as more risky to insure than drivers who have maintained their coverage. Avoid causing a gap in your auto insurance coverage, even for a day, because it will cost you more for auto insurance in the future!

Your vehicle
Insurance companies base your auto insurance premium on the value of your car and the expense to repair or replace it. Depending on your state, you can save money on auto insurance by getting certain theft-prevention devices and safety features installed in your vehicle. Get an auto insurance quote from Esurance to find out how much you save on your auto insurance.

Your driving record
Your driving record is weighed heavily when it comes to factoring your auto insurance premium. If you have a good driving record, you can expect to earn a good driver discount (if available in your state). However, if you’ve received a speeding ticket or filed an auto insurance claim or two, you should expect to pay higher auto insurance rates.

Your family’s driving record
If you share an auto insurance policy with your family, spouse, or domestic partner, you may be eligible for a multi-car/multi-driver auto insurance discount (if available in your state). However, be warned that combining policies will also mean that you share in your family’s speeding tickets and auto insurance claims— which if present, will mean higher auto insurance premiums!

Your Zip Code
Insurance actuaries adjust auto insurance rates to the area where you’re living. If your area has high rates of theft and claims, you can expect to pay more for auto insurance to offset these costs. Generally, highly populated areas have higher auto insurance rates because you’re more likely to be involved in an accident and file an auto insurance claim!

Your credit score/rating
Over 90% of U.S. insurance companies, including Esurance, use credit-based insurance scores to establish eligibility for payment plans and to help determine insurance rates. (In case you’re wondering, credit-based insurance scores predict how likely you’ll pay your bills in the future.) Actuaries and research analysts have found that the scores help predict your accident potential. If you have a high credit score, you can generally expect lower auto insurance rates than someone with a low credit score.

Your annual mileage
Insurance companies charge drivers with high annual mileage more for auto insurance because they have more opportunities to become involved in accident (and file auto insurance claims).

Driving safely is the best way to lower your auto insurance premium. Visit the Esurance Auto Insurance Learning Center for tips on driving safety and saving on auto insurance.

Shop online for the best auto insurance rates. Get an auto insurance quote from us and see how much you save on auto insurance today!