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What factors impact your car insurance rate?

Posted on Wednesday, March 1, 2017 at 9:56:56 AM

Car value is just one of the many factors that can affect your auto insurance rates. Obviously the more valuable the vehicle is deemed the more expensive it can be to insure.

Other major factors that have impact on your insurance rates are:

1. Age and gender
While I personally am hoping this goes away soon, in meantime, insurance companies have the data to back up the higher insurance rates for young people and males.

2. Marital status
Another one I hope goes away, but again: Insurance companies have crunched the numbers and found married people have fewer accidents and claims, therefore lower rates are generally offered.

3. Where you live
Vehicles are generally more expensive to insure in populated areas. 

4. Credit score
Not all companies use credit score as a determining factor, but it is still very common. The lower the credit score, the higher the insurance rate. To avoid paying an arm and a leg, do your best pay all bills on time. This should also help you get lower interest rates for a variety of loans.

5. Profession
If you use your car for work, the vehicle is assumed to be used more. This increases your chances of having an accident, which raises your insurance rates.

6. Vehicle Safety Rating            
Simply put: The higher the safety rating, the cheaper a car is to insure. 

7. Size of Vehicle/Engine          
Larger cars are generally rated as safer, therefore usually have lower rates. However, bigger isn't always better when it comes to insurance: Larger engines are general faster and more powerful, which can lead to higher rates. 

8. Age of Vehicle           
A newer the vehicle is generally a higher cost to insure. 

9. Likelihood of Theft    
When I found this one out, I was miffed: If your car is on the top 10 theft target list, there can be a major price difference for insurance! I did not research this before selecting my vehicle and could not believe how much higher it is to insure a car on the list.

10. Driving record            
This one speaks for itself: If you have a long, not so solid driving record, you'll pay more in insurance. It pays to obey the rules of the road and drive proactively, safely, and not distracted.

As always, happy and safe driving!