Top 5 Factors Determining Your Car Insurance Rate

Auto insurance protects the family.

Auto insurance can be confusing and mind-boggling, and sometimes it’s hard to figure out why some individuals are receiving lower rates than others. There are many factors that determine your car insurance rate, some of which you have control over and others you don’t. Below you will find five factors that play a big role in affecting the rate of your car insurance.

1. Age – Your age will greatly affect the rate of your car insurance. Teenagers will have higher rates for no other reason than their age. If you are a teenager, there is unfortunately nothing you can do about this. As you get older and become a more experienced driver, your rates will go down. Although they will go down, they will not necessarily stay down. The car insurance rates of elderly drivers tend to rise because their eyes and coordination are generally not as effective as they used to be.

2. Auto insurance companies – This is a factor that you have control over. Some car insurance companies offer lower rates than others for many reasons. It is up to you to choose which one will benefit you the most both now and in the long run, and you can start your search at

3. Gender – Whether you are male or female will also affect the rate of your car insurance. This is yet another factor that you have no control over. Females generally have lower car insurance rates because according to insurance companies men are seen as an increased risk for car accidents.

4. Type of vehicle – As much as we would all love to be driving a shiny luxury sports car all around town, the insurance rates for these types of vehicles are relatively high. If you want your auto insurance rates to be low, it’s a good idea to buy a car with a lower price tag. The more money your car is worth, the higher your car insurance rate generally will be.

5. Driving violations – This is another factor that you have control over. I know how tempting it is to race your friends the moment you get your license for the first time, but the amount of money you will pay in the long run from risky or aggressive driving hardly seems worth it. Any type of ticket you receive can potentially increase the rate of your car insurance. If you want to pay less for car insurance, I would suggest abiding by the rules of the road.

Although these are among the most important factors in determining your rate of car insurance, there are many other factors that also play a role. Auto insurance is something we all have to pay for, but by knowing these factors you can actively take steps to reduce your rate and save money in the long run.