What Are the Top 5 Factors Affecting Your Car Insurance Quote?

Wednesday, August 22, 2018

When it comes to car insurance, there is no one-price-fits-all. We all pay a different rate based on various factors. And those factors will have either a positive or negative impact on your premium.

The positive effects will save you money, and the negative will increase your rates. Fortunately, some of the negative factors can be prevented or improved over time. Let’s take a look at the top 5 factors that affect car insurance quotes so that you can gain a better understanding of what is affecting the cost of your insurance.


  1. Your Gender and Age

Your age and gender are demographic factors, and there isn’t anything that you can do to change that. Based on several years of reports and research, young men usually have much higher insurance premiums than young women. This is due to males in their teens and early 20s are more likely to have an accident than females of the same age.

At the same time, older men typically have better car insurance rates than older women. There is some evidence that suggests older women close to their senior years are involved in more minor car accidents than men of the same age. However, the difference in the cost is usually minimal.


  1. Your Car’s Safety Rating

These days it’s essential to pay attention to a car’s safety rating when you are shopping for a new vehicle. Not only will you know up front how safe the car is, but if your new car has a high safety rating, you will also pay less for your car insurance. When you drive a car that has a high safety rating, insurers believe you are less likely to be involved in an accident. This will help to lower your rate. Vehicles that have a low safety rating will usually cause the owner to have a higher premium.

You may not be able to trade in your car because you’re unhappy with its safety rating, but you can keep that in mind the next time you are in the market for a new or used car.


  1. Your Driving History

If you have ever been involved in an accident or filed an auto insurance claim, your insurance provider will choose to be cautious that you may make another mistake again. If you have tickets or a bad driving record, that will have a significant impact on your insurance rates as well.

The good news is that over time, these issues tend to be less of a deciding factor. So, if you received a few speeding tickets five to ten years ago, chances are it will not impact your insurance rates today. Being a safe driver and obeying all traffic laws is an excellent way to get back on the right track and avoid higher insurance premiums.


  1. Your Driving Activity

Some insurance companies adjust your premium based on how your car is used. If you have a long commute to work or if you enjoy traveling on vacation, this will add miles to the vehicle. And the way insurance companies see it, the more miles you are on the road, the more risk you pose, that someone who uses just used their vehicle for everyday living.

You may be able to get a discount on your car insurance if you don’t drive it often. If you keep your vehicle in a secure place such as a garage with a security system, it will be less likely to become damaged or stolen. These actions can have a positive impact on your rate.


  1. Likelihood of Theft

Some vehicles are more likely to be broken into or stolen than others. And if you own a car that is currently on the Top Ten Most Stolen List, that will cause your rate to be higher than a car not on that dreaded list. However, if you have an alarm system or other anti-theft features in place, those safety measures could help to lower your price.

There are many other factors that insurance companies use to determine rates. Where you live can also play a factor. An area with high crime can cause you to pay higher rates. Some insurers will also pull your credit score to determine your insurability.

To learn more about how to avoid high car insurance rates, contact the experts at ProtectiveAgency.com at (877) 739-9367. Our licensed insurance experts will be happy to answer any questions you have.