Reader’s Question:

My parents and I both have the same auto insurance provider here in Indiana, but why is it that my rates are higher than theirs?

Coleen

Gary, IN

You brought up a very interesting question here! a lot of people get surprised to learn about the huge disparities between auto insurance rates and why some people get more affordable auto insurance rates than others. It is important to understand that auto insurance is not a commodity, and there are a lot of factors that one needs to account for when rates are being determined. Listed below are some of the common reasons why rates differ per customer to help you understand your situation there in Indiana.

1. One of the biggest factors influencing auto insurance rates would be a driver’s age group. Middle aged (25 – 40 y/o) would enjoy the least amount of premiums than any sixteen-year old first time driver with raging hormones. Seniors seem to be out of luck too as auto insurance companies see them less capable of avoiding car accidents.

2. The make and model of your vehicle would also be considered. Aside from the vehicle’s safety ratings and popularity among car thieves, the size of your car also counts. Smaller vehicles are statistically shown to get involved in auto accident more frequently.

3. Probably the most significant factor that can make or break your chances of getting affordable auto insurance would be your driving record. This is the most accurate way that an auto insurance company can assess your level of risk. Expect a carrier to look back three to five years back on your history and even the lightest of offenses can cause a significant increase in auto insurance premiums.