MG Insurance is now SouthPoint Insurance Agency

What Factors Affect Your Auto Insurance Premium?

Auto insurance helps to protect you from financial loss in the case of an accident or from theft of a vehicle, and essentially with this agreement, an insurance company will agree to pay for any losses that are outlined in your policy in exchange for you paying a premium. There are several factors that impact the amount you pay for your auto insurance costs, and the less risky your rating factors are, the less expensive your auto insurance will be. If you have questions about your auto insurance policy and possible ways you can save in Willmar, Minnesota, MG Insurance Inc. can help. Read on to learn more about the different factors that affect your auto insurance premiums.

Credit Score

sven-d-a4S6KUuLeoM-unsplash (1)Insurance companies do consider your credit score as an auto insurance pricing factor. It is assumed that drivers who have lower credit are more likely to file a claim than drivers with a higher credit score. Therefore, drivers with lower credit scores pay higher insurance premiums.

History of Claims

Insurance companies also evaluate a driver’s claim history when determining premium costs, including any claims that you file and any claims that are filed against you. Your premium rate will likely increase if an insurance company pays out a claim for you.

Age of the Driver

Car insurance is more expensive for people under the age of 25 because they are seen as risky drivers that could potentially be more expensive to insure due to a higher number of accidents and more reckless driving cases in that age group.

Driving Record

Insurance companies use your past driving record to assess your risk behind the wheel. If you have a prior history of auto accidents, traffic tickets, and past auto claims, you will pay significantly higher insurance premiums. Past tickets can be expunged from your record after a certain amount of time, so it is imperative to begin to drive in a safer manner now.

Marital Status

Your marital status also has a slight impact on your auto insurance rates. Drivers that are married tend to file fewer claims than drivers who are single, divorced, or widowed because it is assumed that they share driving responsibilities and they are often deemed as more financially stable drivers.

Saving Money on Auto Insurance

There are several factors that affect your auto insurance rates, and understanding them can often help you lower your monthly payments. You may also want to review your policy with your agent to ensure that you are appropriately covered, to see if you qualify for any discounts, or to see if bundling your auto insurance with other policies could help to save you money. Contact MG Insurance Inc. in Willmar, Minnesota today for an auto insurance consultation.

Contact Us

SouthPoint Insurance Agency
333 5th St SW
Willmar, MN 56201
Phone: (320) 235-9394


M-F: 8:00 am - 5:00 pm