What Factors Impact Car Insurance Rates?
Written by Cooper & Friedman on March 13, 2020
When you see car insurance rates, the quotes you receive are based on a range of factors. Some of these are things you have some control over and some aren’t. This means that the cost of identical coverage for one person might be completely different for someone else. Here are some factors you should know about car insurance rates.
Your driving record is probably the single most important factor in the rate you pay. The longer you drive with as few accidents or traffic violations as possible, the less you’ll pay for the same coverage. Conversely, an accumulation of tickets and fender-benders will cause your rates to skyrocket. A serious incident like a DUI can even disqualify you from getting car insurance through major insurance carriers- this means paying drastically higher rates in secondary markets for years after a DUI.
Additionally, the amount you drive impacts rates. This comes down to simple likelihood. The more you drive, the more chances you will have to get in an accident. So, your long commute can mean higher car insurance premiums.
Your vehicle make, model, year, and trim level all impact your rates too. More expensive cars have higher rates because of greater repair costs and potentially larger claims. If your car has lots of high-tech features like speaker systems, they can raise rates as well since there’s more value to insure. If the type of car you drive is a favorite of thieves, it can cost you more too. On the other hand, if you drive a car that has a high safety rating or really minimal repair costs, your rates may see a drop.
Location has a lot to do with how much you pay for car insurance too. Usually, rates in cities are higher because accidents and theft happen more often per capita in cities. Car insurance companies can be really specific with this data- some neighborhoods in the same city or zip code might have totally different rates because of accident or theft likelihood. Even where you park your car can be a factor- on-street parking is considered more risky than garage or off-street parking.
Who you are has an impact on car insurance rates as well. Women tend to pay less for car insurance than men. Your age matters too. Younger drivers pay significantly higher rates that only start dropping around age 25. Your marital status, higher education attainment, home ownership, and credit history also come into play. Companies often offer lower rates to married people, college degree holders, home owners, and people with good credit histories.
Regardless of your factors, shopping around for different car insurance rates is always a good idea. Different companies will offer you different rates for the same coverage because their pricing models are varied. While you can’t control a lot of the factors that play into car insurance rates, you can be equipped with the knowledge of what to avoid and what might be driving your rates high or low.
As an experienced injury law firm, we’ve defended the rights of clients with hundreds of different types of injuries including car crash injuries. Learn more about our law firm, or set up a free case consultation with one of our experienced injury attorneys by calling 502-459-7555 now.