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November 28, 2023
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Factors Contributing to Auto Insurance Rates

Understanding what influences the cost of your auto insurance is critical to finding the best deal. Various factors, ranging from personal driving history to the type of vehicle you drive, play a significant role in determining your auto insurance rates.

Consult your agent to shop for favorable auto insurance rates.

Driving Record and History

Your driving record is among the most influential factors in determining your insurance rate. Insurance companies look at your driving history to see if you’ve been in accidents, especially where you were at fault. Speeding tickets, DUIs and other traffic-related offenses can also increase your insurance premiums.

Age and Driving Experience

Age and experience affect your car insurance premiums. Teenagers and drivers in their early twenties may face higher car insurance rates due to their lack of experience and higher accident rates.

Vehicle Make, Model and Valuered car under tree

The car you drive also impacts your car insurance rates. Vehicles with high safety ratings and advanced safety features can lower insurance costs. More expensive cars, such as luxury or high-performance vehicles, generally cost more to insure because they are more costly to repair or replace.


Where you live and drive affects your premiums. Urban areas with higher traffic density and theft rates tend to have higher insurance rates than rural areas.

Each state has different insurance laws and requirements that can also affect pricing.

Insurance and Claims History

Maintaining continuous auto insurance coverage can positively impact your rates, while a history of multiple claims for at-fault accidents can lead to higher premiums.

Vehicle Usage

How often and how far you drive may also affect your insurance rates, depending on your auto insurance type. For example, vehicles used for business purposes might have higher insurance costs. If you drive for Uber, Lyft or another ride-sharing platform, you may need auto insurance with higher liability limits in addition to other policies to help provide appropriate financial protection.

Credit Score

Arkansas law allows insurers to use credit scores to help determine car insurance rates. Drivers with low credit scores may pay significantly more for auto insurance than those with good or excellent credit. Your agent can help you understand how your credit score may affect your car insurance rates.

Contact Us

Contact Variety Insurance Agency in Springdale, AR, to learn more about how insurers calculate car insurance rates and start comparing personalized quotes.


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.

Categories: Auto Insurance