What Affects Car Insurance Rates

Car Insurance

Obtaining car insurance is not always an easy task. The procedure to get the car insurance can throw people off. It’s been a tiring process for some time now, which can lead some jumping from one company to another due to differing rates. To help those who don’t understand what affects car insurance rates & what factors insurance companies utilize to determine different rates, here is a list of factors that can affect the rate of one’s care insurance.

Driving Record

Receiving traffic violations can easily affect one’s insurance rate. Those with clean records can receive discounts for being safe drivers. What can affect rates the most, in this case, is receiving DUI’s or speeding tickets. Insurance companies like to see driving patterns over the years to help determine their insurance rate.

Claims History

Non-fault accidents and at-fault accidents can count against you when it comes to insurance rates, but at-fault accidents will affect it the most.

Type Of Vehicle

In this case, it’s about the value of your car, though vehicle type is important too. Even though cars might have the same cost, say a Cadillac and a Corvette, the Corvette will have an increase in rate as it is a sports car.


If you add physical damage coverage to your plan, then your rates will go up.

Drivers Personal Information

Gender, age, marital status and the number of drivers on your insurance can affect your rates. Teens usually have higher rates. The older you get, the lower your rate will be as well. Insurance companies believe that people who are married tend to be safer drivers.

Vehicle Use

How much you drive your car can affect your insurance rates. As the mileage goes up in your car, so does your insurance rate.


There seems to be a relationship between what kind of job you have and risk. For instance, someone who works in an office who only drives to and from work will be at a lower risk for insurance companies than someone who is a pizza delivery driver.

Credit Score

Your credit can adversely affect care insurance rates as well. Insurers believe that people with low credit scores tend to make more claims compared to those whose credit scores are high, statistically speaking.


Your insurance rate can go up depending on where in the country you live. People who live and drive in rural areas tend to get lower rates. Those who live or drive in urban areas usually get higher rates because those areas are high in accidents. If you live in a neighborhood that might have a high crime rate, it could affect your insurance rates as well.

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