Home » News » Miscellaneous » Factors That Influence Your Car Insurance Rates

When the time comes to shop around for car insurance, it is essential to know anything that influences your rates. There are some things you can do to keep your prices low, like choosing small coverage amounts or increasing the deductible.

But there are other factors in play when talking about car insurance – some of them are out of your control. Since it is necessary to know these influences towards your insurance, we came up with two categories to help better understand them: controllable factors and uncontrollable factors.

Controllable Factors

These types of influences are within your control to either help or hinder your insurance rates. Your vehicle itself can affect your insurance. The amount the car is worth plays a role since it is more likely that an expensive car would require more money to fix if you were to get into an accident. Also, a costly and luxurious vehicle more than likely is a more significant target for theft than an entry-level car. So knowing how the type of car you drive could affect your insurance rate is important.

Your driving history is a significant factor in your car insurance. If you are a reckless driving that has made multiple insurance claims, received a variety of tickets, or anything else that makes your driving record look bad, expect your rates to skyrocket. You become a higher risk for insurance companies if your driving habits are bad. If your driving record is terrible, don’t be surprised if you are refused insurance altogether.

The purpose of the vehicle may also be an influencer. If you are travelling a long distance for work regularly, you may be considered the more high risk for the insurer. This means increased rates. But if you don’t plan to use the car very often, you may be entitled to discounted premiums.

Where you live is also a determinate. If you live in a neighbourhood that has high amounts of insurance claims due to theft, collisions or break-ins, your insurer might think it will happen to you. So to cover their end, insurers will increase your rates.

Uncontrollable Factors

Unfortunately, some influencers are out of your hands that affect your insurance rates. Your age plays a significant role in your insurer. Generally speaking, young and elderly drivers tend to have the highest insurance rates because they pose the most significant risk of getting into, or causing an accident.

Your gender plays a slight role in determining your insurance rates. Although this is not a required determinate, it is one that can be used, whether you agree with it or not.

So when you are shopping around for your next car insurance, remember there are many factors in play. Although many determinates are within your control (like how you drive and what type of vehicle you own), unfortunately, there are some that you cannot change. So shop around between different insurance companies until you find the one that can give you the best rate.

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