Twenty Things That Can Affect Your Car Insurance Costs

When buying insurance, many factors come into play when determining your premiums. Some of these things are in your control and others are not in your control. In this article, we will break these factors down for you.

auto insurance factors

Scroll down to view the 20 things that can affect your auto insurance rates.

Let’s first take a look at the things that are in your power – things that you can do to save on your insurance rates.

Things in your control:

1.       Switching cars
Different vehicles costs different amounts to insure. Many factors come into play when determining this, including: type of vehicle, age of vehicle, safety ratings, price, cost of repair, etc.  You need to switch to a car that is cheap to insure.

2.       Driving safe
If you’ve been in a recent accident or have gotten a recent traffic violation, chances are your premiums will increase. Keep a pristine driving record to keep your insurance costs low.

3.       Buying less insurance
Each state has minimum insurance requirements.  If you don’t feel you need extra coverage (such as collision and comprehensive coverage), you can certainly save a lot of money by getting rid of them. (Be careful with reducing coverage, however. It certainly is a big gamble and can end up costing you lots of money in the wrong situation.)

4.       Anti Theft Device
Purchasing a vehicle with a security system will often get you an insurance discount. Getting one installed on a previous vehicle can also help you save.

5.       Paying all at once
Many insurance companies offer discounts to drivers who are willing to pay for their car insurance for the year up front (instead of month to month).  Ask your insurer about this option.

6.       Being a loyal customer
It costs insurance companies lots of money to find new customers, for this reason, they are willing to fight to keep the customers they currently have. Stick with your insurance company for a while and you might have a hard time finding better insurance rates anywhere else.

7.       Increasing deductible
Increasing your deductible can have a significant impact on your insurance rates.  For example, when I increased my deductible from $250 to $500, my premium went down 25%. How much can you save?

8.       Driving Less
Cutting your miles will not only save you on your gas prices, it also decreases your chances of having an accident.  Insurance companies almost always give discounts to drivers who don’t drive as much.  Consider moving closer to work/school or using public transportation to help you do this.

9.       Combining your insurance
Using the same insurer for multiple policies can help you save a lot of money.  Consider using the same company for your home, auto, life, health, and other insurance policies you may need.

10.   Improve your credit score
Pay off your debts, relieve some stress, and save on car insurance. Credit score is becoming a bigger and bigger factor in determining your insurance costs.  If your credit score recently improved, consider getting another insurance quote.

But what about the things that you have no control over?  Well, life isn’t always fair… but here are some things you should be aware of.

Things out of your control:

1.       How old you are
For obvious reasons, teenagers and young drivers cost the most to insure. However, deductions in insurance rates often come at age 21 and 25.  The more driving experience you have, the cheaper your insurance should be.

2.       Whether you are a boy or a girl
Although you may often hear otherwise, women are actually statistically safer drivers.  If you are a man, sorry, you might be paying more than your wife.

3.       Your past
Your driving record is one of the biggest things insurers look at when deciding your premium. Even though you might have “changed” and have become a better driver since your speeding tickets, it might be hard to convince the insurance company.  Most insurers look at your insurance record for the past 3-5 years.

4.       What college you graduated from
If you are a Harvard graduate you are in luck.  If you are a graduate from Middle-of-Nowhere Community College, however, you might be paying a bit more for car insurance.

5.       Whether you are married or not
Married drivers often pay less than single drivers.  You can also combine your policy with your significant other in order to get discounts.

6.       What you do
Your occupation can have a large influence on your premiums.  If your job requires lots of driving, you might pay more.  Also, if you have a career that insurance companies deem to be “respectable” you will pay less.

7.       Where you live
If you live in a place notorious for bad drivers, you might be guilty by association and end up paying more.

8.       How long you’ve been driving
Just like with age, this is a number you can’t really control, but is very important to insurance companies.

9.       Use for business
If you use your vehicle for your job (i.e. if you are an ice cream truck driver or taxi driver), you probably will have a higher premium.

10.   Multiple vehicles
If you are in a family with lots of vehicles, consider combining them into one policy.  You might end up paying less per-car.

Now that you are educated on what factors can affect your insurance costs, start shopping around!  The only way to truly find the best rate specifically for you is to compare rates from many companies.  This list should help you further understand what kind of rates you can expect.

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  Comments: 7


  1. Also… if you have any accidents or violations that aren’t on your record, certainly DON’T mention them to your insurance agent!


    • in order to provide car insurance, we pull records, we see all your accidents and tickets, if you dont tell the company, they assume you did it on purpose and that looks bad on your character and that makes it harder for you

  2. Clarisse Kline


    I’m just a new at this insurance and coverage, but with the help of this blog, I realized that our government do offer low cost automobile insurance. What a relief! Please keep up the good work and you have the full confidence that all of my friends will be visiting your site always.


  3. This “insurance” thing sure is tricky for a beginner like me, but when I read this blog, I totally got the point. For this is very essential nowadays, I did catch up because of this site. Thank you so much!


  4. Some great advice here, we do things a little differently in the UK but I can see your points are valid. The european courts are changing the law so sex doesnt affect the price of insurance.


  5. Hello,

    My name is Harmen Jaarsma.
    I will be moving to Florida for a long time.

    I am planning to buy an old pickup truck Low value car.
    This car needs to have low insurance.

    I am 27, Nationality Netherlands

    I can’t open the linke above.
    Like to hear from you

    Kind regards,

    Harmen

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