When you visit The Shay Agency serving Wilkes-Barre, PA to buy auto insurance for the first time, you might find it surprising to learn about the many factors that affect your auto insurance cost.
Those ads you see online tell the truth. For most people, even full coverage auto insurance costs little money per month. Your first time might not feel that way.
The first time you buy auto insurance, you present an unknown quantity to the underwriter. Your auto insurance policy varies in cost based on the following important factors.
1. Your credit score
If you just gasped because you didn’t know that your credit score affects the cost of your insurance at all, sit down. It offers one of the most influencing factors. Your credit score tells the underwriter how large a risk you present. Individuals with high credit scores always pay their bills on time and manage their credit well. This indicates a responsible nature to the insurance underwriter and company, meaning you present less risk than someone with no credit score or a low one.
2. Make and model of your vehicle
Insuring a 2010 Hyundai Santa Fe costs less than insuring a 2022 Tesla Model S Plaid. Age doesn’t always control the cost, though. For example, you’d spend more to insure a 1970 Plymouth Fury or 1963 Corvette Stingray than you would a 2022 Chevrolet Spark E or Bolt.
3. Your Zip Code
Your location, specifically where you park your vehicle, heavily influences your insurance rate. If you live in an area with a high crime rate, you’ll typically pay more for insurance premiums.
What Doesn’t Affect Your Rates Any Longer.
Some states make it illegal to consider gender or marital status in determining your insurance cost. If you reside in the state of Hawaii, Massachusetts, Michigan, Montana, North Carolina, or Pennsylvania, your insurer can’t consider your gender in setting your insurance rates. If you moved to Pennsylvania from the state of Hawaii, Massachusetts, Michigan, or Montana, you might find it surprising that insurers here do set rates based partially on marital status.
Contact The Shay Agency serving Wilkes-Barre, PA for more information on auto insurance. Let us help you obtain your first-time Pennsylvania auto insurance.