Which Criteria Affect Car Insurance Rates?

Best car insurance deals photo

Getting the Best Car Insurance Deals

Several factors are considered by the insurance company in determining your auto insurance premium.

There are factors in getting the best car insurance deals that you can control. There are also those that you cannot control.

Sometimes, it can be tempting to reduce your rate by reducing the coverage of your insurance.

However, it is important that you know the factors considered by the insurance company in determining your auto insurance rate.

Of course, these companies do not necessarily use the same set of guidelines, but here are the common factors considered in determining your rate:

Your Demographics

Gender, age, marital status, your occupation, where you live, even your credit score. These have impact on getting the best car insurance deals.

Gender and Age

Statistics show that in the United States, younger men have more accidents than younger women. That is the reason why younger male drivers typically pay higher premiums than younger female drivers.

However, older males generally have lower rates than older females because statistics reveal that older women are into more minor accidents than their male counterparts.

In general, men pay about $15,000 more for their auto insurance in their lifetime than women. This is according to a CBS news post.

Marital Status

Married people pay lesser auto insurance premium than single people. This is on the premise that married people are generally, more stable and less accident prone than single people. So married people are likely to get the best car insurance deals.


Auto insurance companies make correlation analysis between your profession and your risk of accidents. There are professions which put you on the road constantly, thus, increasing your risk of accidents.

Journalists and delivery drivers pay higher premiums than police officers, nuns, insurance underwriters and even pilots. The latter set of professions, being on the road less often, and by the nature of their profession, tend to have more cautious disposition on the road and receive the best car insurance deals.

Where You Live

Some locations are just more accident prone than others due to traffic congestion. More densely populated neighborhoods expose vehicles to higher risk of collisions and theft.

Many urban areas have higher rates of uninsured drivers. Also, there are areas which are simply more expensive than others. These are factors that increase your auto insurance premium and will affect if you get the best car insurance deals.

Credit Score

Several studies reveal that there is high correlation between credit score and claims history. People with low credit score tend to have higher rate of claims and so may not get the best car insurance deals.

Your Vehicle

Your car certainly affects your insurance rate. There are cars which are more prone to theft than others. There are cars with less safety features than others. And there are cars which cost much more to repair and so are unlikely to get the best car insurance deals.

Safety Rating and Safety Feature Discounts

The safety rating reflects the safety of your car in preventing injury to people in case of accidents. Such rating includes driver protection (crashworthiness) and protection for other road users (aggressivity).

The existence of safety features in your car such as air bags, automatic seat belts and traction control can increase your car safety rating and can significantly decrease your premium, meaning you’re more likely to get the best car insurance deals.

Vehicle Size

Statistics reveal that larger vehicles are less accident prone than smaller vehicles. Thus, these types of vehicles require lesser insurance premiums and are likely to get the best car insurance deals.

However, cars with larger engines relative to body size tend to have higher rates than their counterparts.

Vehicle Age

In general, an older car would cost less to insure. There are other factors related to age which are considered by the insurance company. For instance, old cars have less safety features. Old cars are more likely to be totally wrecked in accidents. These factors affect the premium that you will have to pay.

Likelihood of Theft

Well, there are cars which are more attractive to thieves than others. Also, cars may have anti-theft features.

Other Factors

Your Driving Record

Some insurance companies go back as five as five years to make an assessment of your driving history and the premium that you will have to pay, so your driving record has a big impact on whether you get the best car insurance deals or not.

Claims History

Your insurance company will certainly consider your previous auto insurance claims in determine your premium. Experts say that if you go long enough without a claim, the insurance company may put you in a category that keeps you from being dropped because of insurance claims.

Miles Driven Each Year

Some insurance companies consider this a factor in determine your rate.

It is truly important that you have an understanding of the factors which affect your auto insurance rate. While there are factors that you cannot control, there are also those that you certainly can.

With proper understanding and planning, you can certainly keep your insurance rate down without necessarily downgrading your coverage in case of accidents.

So, control your speed. Never drink and drive.

Be more cautious on the road. Take advantage of discounts.

Examine your auto insurance coverage. These are the things that you can do to enjoy lower auto insurance rates.

The following two tabs change content below.

Steve Gebhardt

Gebhardt Insurance Group was honored by AAA Insurance for being the top New Policy Agency in Arizona for 2013 and achieving the "Emerald Achievement Award."
Posted in