Three Factors Influencing Your Auto Insurance Cost

Driving your own vehicle is both a privilege and a responsibility. It is a privilege because not everyone can buy a car. If you are riding public transport, you should follow its departure and arrival schedule and pick-up and drop-off points. But with your vehicle, you will have the freedom to go to places on your schedule.
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Meanwhile, having a personal vehicle is also a responsibility. You now should protect yourself, your car, and your passenger whenever you are driving. There are risks associated with operating your vehicle on the road. You can accidentally hit someone, or you could get involved in a road accident. Hence, it is essential to get financial protection for these risks.

Mandatory Requirement
Auto insurance is a must-have for anyone taking his vehicle on the road. Nearly all states have laws that will require you to have and carry an active auto insurance policy. Only Virginia and New Hampshire are the states that do not require drivers to have auto insurance. However, even in these two states, you are still liable for any road accident that you created.

In most cases, it is costly to shoulder the expenses for car repairs and medical treatment if you caused a road accident. If you do not have car insurance, these expenses will surely hurt your funds. Auto insurance can provide financial coverage for car accident-related costs. Thus, it is significant to learn the three factors that help dictate the auto insurance premiums you will pay.

Your Vehicle
Car insurance companies will compute your insurance premium based on the type and model of your vehicle. If you are driving a luxury car, your insurance premium will move the insurance cost up. The primary reason is most of the parts and components of a luxury vehicle are expensive to replace.

A 2018 study found out that small SUVs have the least expensive auto insurance with $1,074 per year among the types of cars. Medium SUVs follow it with an annual insurance premium of $1,102.
The same study also reported that small sedans recorded the most expensive car insurance premium with $1,315 every year. On the other hand, the pickup truck got the second most expensive car insurance premium with $1,242 annually.

There is a $241 between the annual cost for insuring a small SUV than a small sedan. So, if you are on a budget, owning a small SUV is more economical than getting a small sedan. 

Your Location
Your residential address plays a significant role in computing your auto insurance premium. Each state has its policies governing auto insurance. State regulations define the required coverage that drivers should have. Laws and policies on car insurance are factors in determining the insurance cost you need to pay.

A recent comparative study revealed that drivers in New Jersey and Connecticut pay more car insurance premiums than in any other state. On average, the car insurance premium in New Jersey is $1,553 every year, while Connecticut's yearly insurance cost is $1,541.

Meanwhile, car owners in Ohio and South Dakota are paying the cheapest auto insurance across the country. The average car insurance premium in Ohio is $1,195 per year, while the annual insurance cost in South Dakota is $1,199.

Conclusion
The vehicle you owned and your home address are among the factors that help determine the insurance premium that you will be paying. Car insurance companies also consider your age, driving record, credit history, and coverage extent in calculating your premium.

At Arnold, Bruce & Doerfler Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (503) 222-1951. You can also request a free quote by CLICKING HERE.