How Prices Are Determined for Auto Insurance Plans in Chicago

Even though every insurance agency has a formula they use to calculate premiums for their clients, there are some common base factors they all include. Obviously, they will take into consideration the make and model of your vehicle. They will also ask you how the vehicle is used. If you drive to work or school, they may ask how many miles you typically drive in a day. They will also consider your driving record. However, there are a few other factors that are used to determine the cost you pay for auto insurance plans in Chicago.

Marital Status, Age, and Gender

Since statistics have consistently shown young drivers with minimal experience and males are more likely to have an accident, they may have to pay more for auto insurance plans in Chicago. However, married drivers are not as likely as unmarried drivers to file accident claims.

Where You Live

If you live in an urban area with an unusually high crime rate, it’s considered a higher risk than those living in a rural area. Rural areas tend to have less traffic and fewer incidents of car theft than urban areas. There are also fewer car break-ins on average. These factors can all affect the price of your policy.

Credit Scores

Insurance companies often consider your credit score as a factor when calculating premiums. Industry-related data shows individuals with higher credit scores tend to have fewer accidents. There are some consumer advocates who feel it is unfair to penalize lower-income drivers, but currently, it is legal to do so.

If you’re looking for affordable auto insurance plans in Chicago, visit the Illinois Automobile Insurance Agency website for a quote.