Car Insurance

Factors Influencing Auto Insurance Rates

(ABC) - Insurance companies and industry groups are saying the recall of more than 8 million Toyota cars and trucks shouldn’t have an impact on insurance rates. The price of auto insurance is determined by many factors, and isn’t limited to just the model you drive, the cost to fix it and its overall safety record.

The Insurance Information Institute, a trade group for the insurance industry, said the average driver pays about $850 a year in insurance. Your bill can be influenced by several factors:

DRIVING RECORD

The more accidents and serious traffic violations you have, the more you’ll pay. You may also pay more if you haven’t been insured for a number of years.

MILES DRIVEN

The more miles you drive, the more chance for accidents, the more you’ll pay. If you drive less than 10,000 miles a year, you will pay less. Some companies will give discounts to policyholders who carpool.

WHERE YOU LIVE

Insurance companies look at local trends, such as the number of accidents, car thefts and lawsuits, as well as the cost of medical care and car repair.

Read full story