Driving down the road and all of the sudden you are rear ended. The luck is not in your favor, and if you don't have good auto insurance you could be paying for the car and your hospital bill all on your own. This is one of the reasons that it is so important that you take the time to find the best possible auto insurance policy possible. Many people will try to save a little bit of money each month, but if you ever have to use your insurance it is nice to have a good policy. So, the goal is to find good insurance at an affordable price. Here are a few different factors that are used to determine your insurance premiums. 

Credit

The insurance company is taking a risk in insuring you and your vehicle. They are willing to help pay for damages to you and your car if you ever have an accident. They are willing to do this if you pay them a specific price each month. So, obviously they need to be paid. The insurance company will check your credit to see how likely you are to pay your bill and pay it on time. If you have a history of paying on time, then you are less of a risk. If you have a poor credit score you are more of a risk and they will justify insuring you by increasing your premium.

Driving Record

If you were to allow a person to borrow your car, would you lend it to a driver that had a good driving record or one that was notorious for speeding and traffic violations? This is a simple question, but as an insurance company they want to insure the best drivers possible. A bad driver is likely to cost them money, So, your driving record is a big factor in your insurance premium. If you do have a ticket then talk to your local Department of Motor Vehicles and ask about driving school to remove the point from your record. 

Car Type

If you are driving a classic car that is worth a lot of money, or that is very expensive to repair it will be much more to insure. This is simply because if you are in a fender bender the insurance company is likely to have to pay for any of the damages, and if the car is expensive, then they will pay more for the fix. You may want to consider talking to the insurance provider about different cars and how they impact insurance premiums.

For more information, contact companies like Independent Insurance Associates Inc.