4 Surprising Factors that Affect the Price of Auto Insurance

The price of auto insurance varies widely between drivers. You probably know some of the reasons why the price can vary: some demographics are more prone to getting into accidents, for example, and drivers with a history of accidents will always pay more than drivers with a clean history.

But there are certain factors that go into car insurance that you might not expect. Here are 4 things that have a significant impact on your car insurance price that you might not expect.

Your Credit Score: Your credit score impacts the price you pay for car insurance. People with lower credit scores typically pay more for car insurance than those with higher credit scores.

Marital Status: Married people tend to have fewer accidents than single people. Yes, your marital status will affect your auto insurance policy.

Your Profession: People with certain professions get in fewer accidents than those in other professions. Your insurance company will take your profession into account. Someone who works from home, for example, may pay less for insurance than a courier.

Vehicle Size: Obviously, the type of vehicle you own will affect the price of car insurance. However, the size of your vehicle can also affect your price. Larger vehicles can cause more damage to other cars and property. If you’re in an accident in a large vehicle, then your claim could be larger than a driver with a smaller vehicle.

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Explaining Why Auto Insurance Prices Change Over Time

Auto insurance prices can change significantly over time. Obviously, prices decrease as you grow from a teenager into your 20s. However, prices can rise or fall over the years based on a number of different factors. Sometimes, prices for car insurance can even rise or fall within minutes as you’re checking prices online.

To understand why prices change, it’s important to understand how insurance companies calculate insurance prices. They typically calculate prices based on a series of complex algorithms. Those algorithms have one goal: identify how like you are to damage your vehicle and make a claim on your insurance policy.

Certain demographics are in higher risk groups – like young males. Other factors can also come into play – like your credit score or your history of speeding tickets.

In some cases, your fluctuating insurance prices have nothing to do with your unique characteristics. Instead, fluctuating prices occur because of things like deals and cookies: many insurance companies lure you into their website with promises of cheap insurance quotes, for example, only to raise prices when the tracking cookie spots a repeat visitor. This is one reason why the same website could give you two different insurance quotes – even within the span of a few minutes!

The best advice I can give is to frequently use an insurance comparison website like Insurance Panda. The site offers quotes from top insurance companies in your local area. Just enter your ZIP code to get started, and the website will spit out dozens of quotes from popular car insurers in your area.

Using a comparison website, you can determine if a particular website is just trying to take advantage of you – or if you should legitimately be paying that price for car insurance.

Top 5 Most Expensive States for Car Insurance

Drivers in certain states pay more for car insurance. Unfortunately, there’s nothing you can really do about the place you live. Today, we’re highlighting the most expensive states for car insurance – and explaining why some states are more expensive for vehicle insurance than others.

Without further ado, the five most expensive states for car insurance in 2018 include:

  • Louisiana
  • Oklahoma
  • Michigan
  • West Virginia
  • Montana

Honorable mentions go to Washington DC, Rhode Island, Wyoming, California, and Georgia, all of which routinely place in the top 5 or top 10 states (the specific states vary every year).

Why Are Some States More Expensive?

States are more expensive for a number of different reasons. In general, states have expensive auto insurance because auto insurers have higher costs, and auto insurers have higher costs because they’re paying out more expensive claims relative to other states.

So why are insurance companies paying more for claims in certain states? There are a number of different reasons.

Some states have more bad drivers than other states, and those bad drivers file more claims than drivers in other states.

Other states have bad driving conditions, and the roads in certain states might be perceived to be riskier than the roads in other states (Montana and Michigan get serious winters, for example, which may play a part in their high car insurance prices).

Compare Car Insurance Quotes to Save Money

Comparing car insurance quotes is the best way to save money even when you live in a state with expensive car insurance.

Insurance Panda, found online at InsurancePanda.com, is the internet’s favorite resource for easy car insurance comparison shopping. Within minutes of entering your ZIP code, you can view fast and easy quote information from insurance providers serving your local area. Visit online today to get started, or for full details on the most expensive states for car insurance continue reading here.

Why Car Insurance is More Affordable in the United States Today than Ever Before

Car insurance prices have been dropping across the United States since the 1990s. Today, car insurance is cheaper than it’s ever been before. According to one report, all but six states have witnessed significant drops in the price of car insurance since 2001.

Why is car insurance getting cheaper? Well, there are several major reasons, including:

  • The car insurance market is more competitive than ever before, making it easier for customers to compare quotes and get a better deal
  • There’s less regulation in the insurance industry, which means insurance companies have fewer quality standards to meet (and they can pass savings onto consumers)
  • There’s a smaller residual market
  • Insurance companies only provide moderate compensation for injuries (many plans are limited to just $10,000 or $25,000 in coverage, for example)
  • More motorists are insured today than ever before, which reduces risks for everyone driving on the road
  • There are lower unemployment rates

Here’s the main reason why car insurance is cheaper than ever before: it’s because it’s easier than ever for drivers to compare car insurance prices between companies. Websites like InsurancePanda.com let anyone request an auto insurance quote for free. This means insurance companies can’t get away with offering unusually expensive prices: their rates need to be competitive with other providers.

In “the old days”, you trusted your insurance company to offer fair prices on car insurance plans. However, they didn’t always play fair. Customers couldn’t easily get quotes from multiple insurance companies simultaneously, for example, like they can today with websites like Insurance Panda. Read more about car insurance getting cheaper and cheaper.

Of course, cheaper insurance certainly does not mean better insurance. Some states have extremely low liability requirements. They might require you to have just $10,000 in coverage to legally drive on the road, for example. If you’re in an accident, your barebones insurance policy will only cover $10,000 in damage or $10,000 in medical bills. In a significant accident, that may not be nearly enough to cover the bills. Compare insurance quotes today to pick the perfect quote for your unique needs.

Make Insurance Shopping a Black and White Issue with Insurance Panda

At Insurance Panda, shopping for auto insurance is so easy – it’s black and white! Discover the best rates on car insurance plans today by visiting InsurancePanda.com. The easy-to-use website lets drivers in all 50 states compare auto insurance prices at a glance. There’s no need to manually request a quote from each insurance provider in your area. You don’t need to call 10 different offices, nor do you have to visit 10 different websites. With Insurance Panda, you just have to enter one 5-digit number – your ZIP code – into the online form to view the top car insurers in your local area.

Insurance Panda was founded in New York in 2011. Over the years, the company has helped thousands of drivers across America save money on car insurance. Shopping for car insurance shouldn’t be difficult. Unfortunately, many drivers are paying way too much for insurance. That’s where Insurance Panda wants to help. If you can click your left mouse button, then you can order a quote from InsurancePanda.com. It’s so easy that even a panda could do it!

Insurance Panda is designed for all types of drivers. Some shoppers want comprehensive policies with all of the bells and whistles. Other drivers want the cheapest minimum insurance required to legally drive on the road in their state. Whatever type of insurance you’re looking for, you can view at-a-glance information from your region’s top insurers.

Insurance Panda takes pride in offering practical insurance information. While other comparison websites drown you in technical jargon, Insurance Panda takes a different approach: Insurance Panda provides no-nonsense, at-a-glance information about each car insurance quote. You can easily compare quotes by their price, their coverage, or other information.

Ultimately, shopping for car insurance has never been easier than it is with Insurance Panda. Visit InsurancePanda.com today to start shopping for vehicle insurance.