Greater Fort Worth makes up half of one of America’s largest urban areas, and because of the high population and massive infrastructure system, there are plenty of vehicle accident risks present. Higher driving risks likewise cause higher than average auto insurance premiums for local drivers. However, numerous unique risk factors influence your overall risk profile, which likewise influences your individual premium. As a result, you have a lot of ability to keep your auto insurance rates intact.
So, what are some of the ways that you can keep your auto insurance rates in line, even in an area with higher-than-average premiums? There are actually many of them, and with the help of our agents, you can work to ensure you always receive optimized premiums.
Understanding Car Insurance Risks
Auto insurers assign every driver a risk rating, which is that driver’s risk of filing a claim on their auto policy. If the driver has a high risk rating, then they are more likely to cost the insurer a lot of money in the future. Therefore, their premiums will likely be higher now.
To calculate these risk ratings, insurers look at a variety of metrics that help them gauge how likely you are to file a claim, and how much you are likely to cost them when you do. Of course, from company to company, these metrics vary, which is why one insurer might be cheaper for you than another.
However, most insurers use quite a few common metrics as part of their rating tools. These include:
- Accident History & Driving Record: Your insurer will be able to see your driving record when quoting your premium, and if they see that you have a history of tickets or accidents, then they are likely to raise your rates.
- Age: Both youth and seniority can drive rates up. Younger drivers usually have to pay more because they don’t have the experience to be very safe drivers. Older drivers might pay more because even though they have experience, their faculties might have diminished and put them at risk of accidents.
- Insurance History: If you have ever had a time where you have driven without insurance, then you will represent a risky investment for the insurer. Therefore, you need to maintain coverage continuously from the time you become licensed.
- Vehicle Value: If you wreck a brand new car, as opposed to one that is several years old, then you will cost the insurer a lot more money. Therefore, your rate is likely to be higher on your newer vehicle.
- Credit Scores: Credit ratings are indicators of how reliable an insurance customer you will be, and it will show your overall financial stability. Therefore, higher scores might lead to lower rates.
Though other rating metrics might also influence your premium, it is your cumulative risk that will ultimately determine your premium. As a result, if one of these ratings indicates you are a high risk, a low rating from another metric might likewise balance your rates. All in all, if you do all you can to be a safe driver, then you should be able to count on keeping your rates affordable over the life of your policy. Contact our dedicated Fort Worth Insurance agents today to get started with a free quote!