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 your current vehicle can also help you save. The reason for this is simple – if thieves can’t break into your car, the less likely they are to steal it. The less likely they are to steal it, the less likely your insurance company will have to pay to replace it.

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 safer drivers. The reason for this is that, statistically speaking, men get in more serious accidents, get more speeding tickets, and are generally more aggressive on the road. If you are a man, sorry, you might be paying more than your wife for insurance.

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.  The reason for this is because they can combine their insurance policy with their significant other in order to get discounted rates.

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.  If you have a career that insurance companies deem to be “respectable”, such as a teacher or a doctor, 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. If your neighborhood has a high amount of auto accidents, break-ins, vandalism, and crime, you can expect to pay more for your auto insurance premiums.

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. For drivers under age 25, insurance rates can be astronomically high. Teen drivers should expect to pay the most, especially if they are not on their parents’ policy. On the other end of the spectrum, auto insurance rates tend to increase after retirement. Elderly drivers, therefore, should expect to pay a bit more for insurance.

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. In order to remain covered while driving on the job, make sure you first run it by your insurance company. Depending on your profession, you might have to purchase an extra commercial car insurance policy.

10. Multiple vehicles

If you are in a family with many drivers and many vehicles, you’ll pay more for insurance. Fortunately, some insurance companies offer multi-vehicle discounts. Consider combining all of these cars into one policy.  Chances are you’ll pay less to insure each 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: 8


  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


  6. I’m confused, If I graduated from a Ivy league school, that cost so much instead of a smaller local college, I’m paying more? It’s none of your damn business where I went to school, this isn’t a resume! I worked at plants with all men so I could get paid more and I worked with blisters and bruises and pneumonia and it’s very hard and dangerous work but if I was considered, what was your very disapproving word, oh, respectable! My fiance died in the war for all of those insurance folks and also for the un-respectable ones like me. I couldn’t raise a child on my own with a “respectable job”, I couldn’t walk after a 16 hour shift and because my son’s father was killed and I’m apparently undesirable. I’m curious as I wouldn’t tell an insurance company where or if I went to school and to also go off your credit number? Credit has nothing to do with driving and if you think it does, you’re wrong. So I guess poor, dumb white trash with no man and a child, who is now 30, well to know this makes me sick, like we don’t get treated as decent people because our child almost died and was in hospitals for years off and on, which does affect your credit, so we pay double or triple what a rich person who has always had it easy, gets to continually keep us down. I have always been proud of what I’ve accomplished with so little, have now found out that some overweight insurance person actually thinks I’m the Loser?? As if. You have no right to judge people from a school or a number as lots of children don’t get to go but have the brains for any school and some kids get leukemia and I didn’t know that made me a loser. The poor pay their insurance and pay more apparently a lot more, how will we ever get out of debt with disgusting people like that? Horrible.

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