Almost all states in America require drivers to carry insurance when on the road, such as sr22 insurance in texas. However, the applications of auto insurance laws vary from state to state.

There is no minimum blanket coverage across all states, and each has its minimum coverage. The minimum coverage required by states forms the basis by which insurance prices their premiums.

However, the minimum coverage is not the only factor determining the price of premiums. Other risk factors highlighted below also influence the cost of car insurance premiums.

1. Driving Record

Your driving record is among the most important factors an insurer will consider when setting an individual’s insurance premiums. A car insurance provider can look up to five years in your driving history to assign your risk rating.

If they find you at fault for an accident or have amassed significant moving violations, you can expect the insurance cost to be significantly higher. The worst record you can have is a conviction with a DUI or where your license has been suspended.

Luckily you can improve your record with time which can help lower your premiums.

2. Age

The age of the policyholder has a significant influence on the cost of car insurance. If you are buying car insurance for your 16-year-old, you should expect higher premiums than you pay for your car.

This is because younger drivers are riskier compared to their older counterparts. According to the CDC, drivers aged between 16 and 19 are three times more likely to get into a crash than drivers aged 20 or older. The risk is exceptionally high in the first month’s license, primarily due to inexperience.

Luckily premiums reduce with time as long as the young driver maintains a clean driving record. Age stops being a factor at the age of 25.

3. Type of Car

The type of car you drive also determines the cost of insurance. This is especially true if you have comprehensive coverage. The more expensive your car is, the more expensive it’s repairs or replacement will be, attracting higher premiums.

Specific models of cars also attract higher premiums. For example, if you insure a sports car, the insurer may charge higher premiums because of the risk of speeding in your car, causing an accident.

Also, easier-to-steal cars or those that are prime targets for thieves may attract higher premiums.

4. SR-22 Car Insurance

After a DUI conviction, your license may be revoked or suspended temporarily. Most states require drivers to carry an SR-22 license before reinstating their license. SR-22 is technically not a license but a certificate issued by an insurer to a policyholder indicating that they have the minimum coverage with the insurer.

Getting an SR-22 certificate is not expensive. However, having an SR-22 on your driver’s license can increase the insurance cost by up to four times.

If you want affordable insurance after a license suspension, this resource by CheapInsurance.com can help you find the cheapest SR-22 car insurance without compromising on the quality of coverage.

5. Location

All aspects of your location play a significant role in determining your premiums. Location factors include state, county, city, street, and where you park your vehicle. Your state of residence will affect your premiums based on the minimum coverage. City and street influence premiums depending on the location’s security.

In most cases, insurance premiums can be relatively high in areas where car theft is a big issue.

Also when you park your car is an important factor. If you park it on the street, insurance providers will consider it a risk and price your insurance higher than they would if you park your car in a garage.