In the state of Michigan, including areas such as Troy, Birmingham, Rochester, Rochester Hills, and Royal Oak, all drivers are legally required to have an auto insurance policy that has at least a minimal amount of coverage. Your auto insurance rates, however, will depend on a lot of different factors. Your E&Y Insurance agent will gladly elaborate on this, but let’s discuss some of these factors below.

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Your Auto Insurance Rates Vary Based on Demographics

Gender and Age: Younger, less experienced drivers tend to pay higher premiums than do older drivers with more experience. Young women tend to pay less than young men, but older men will often pay less than older women. In many cases, rates will depend less on age, however, and more on driving experience and the number of years you have been behind the wheel.

Marital Status: Believe it or not, your marital status may affect your car insurance rates. Married individuals tend to get into less accidents than do single people, for example, which is why they will often be privy to discounted insurance rates.

Place of Residence: Even within Michigan, different neighbourhoods such as Troy, Birmingham, Rochester, Rochester Hills, and Royal Oak will pay varying premiums. Depending on historical data in your area, such as the number of accidents recorded within the last few years, your car insurance rates may be higher or lower.

Credit Score: There is no set credit score at which your auto insurance becomes cheaper or more expensive, but in many cases your insurance agency will take the number into consideration.

Profession: Individuals within certain professions are considered a liability on the road simply because they spend more time driving on average. This makes them more likely to get into an accident in the eyes of the insurance agency, and tends to raise their insurance premiums.

The Vehicle Itself Has an Impact on Auto Insurance Rates

The Safety Rating: Every vehicle on the road today has a safety rating. This complex rating system takes into account the safety features in the car (airbags, seat belts etc.) and the likelihood of the owner and passengers getting into a car accident. Ultimately, your car’s rating does have an effect on the auto insurance rates you’ll have to pay.

Age of the Car: The older the car, the more prone it is to experiencing issues on the road. Since the value of an older car is typically lower, your vehicle is more likely to be considered “totaled” if the cost to repair it is higher than the value of the vehicle.

Engine Size: Unfortunately, more often than not, the bigger the engine, the higher the cost. However, there is usually an exception for larger vehicles, as they tend to be safer on the road than smaller ones.

Likelihood of Theft: Statistically speaking, certain cars are more prone to theft than others. Adding many modifications to the car or “souping it up” will also impact the likelihood of theft, and therefore your insurance rates.

Driving Habits Affect Car Insurance Premiums

Driving History: The best thing you can do to keep your auto insurance premium low is to maintain as clean of a driving record as possible. Drivers with an impeccable, or near-perfect record often reap the benefits by paying less car insurance.

Driving Activity: When applying for a new auto insurance, your insurance agency will ask you to answer several questions regarding your driving activity. Your rates will often be based on how many miles you plan on driving the vehicle, how much highway driving you will be doing, and the conditions you’ll be driving in on a daily basis. Your agent will take all of these factors into consideration when determining your monthly insurance cost.

Want to Know What Factors will Affect Your Rates? Speak to an E&Y Insurance Representative

As one of the best insurance companies in the Michigan area, E&Y Agency has a roster of skilled insurance agents ready to answer all of your questions and find the right car insurance for you. Although we’ve listed many of the factors affecting car insurance rates above, there are dozens of others involved as well. If you are residing in Michigan an E&Y agent would be happy to assist you. Give us a call at 248-671-6860 or fill out our contact form to learn more.