8 Factors That Affect Your Car Insurance Rate

Your driving record. No other factor affects your car insurance rate more than your driving history. If you’ve had no car accidents, your car insurance rate will be lower than someone who has been in an accident, due to a lower risk. Car accidents cost the insurer money, so it is reflected in your rate.

Your age. Statistically speaking, if you’re younger and less experienced driving, your risk of a collision is higher, so naturally, your insurance rate will be as well. Drivers under 25 have the highest rates and drivers between 50-65 usually have the lowest rates.

Your location. The smaller the town, the lower your rate will likely be. Bigger cities have higher likeliness for car accidents, vandalism, and theft, so your rate will likely be higher if you live in a bigger city.

Your marital status. Statistically, married drivers have fewer accidents, so if you’re married, you pay less for auto insurance.

Your gender. With the exception of Pennsylvania or North Carolina, usually young men in most states pay higher rates for auto insurance.

Your financial responsibility. With the exception of California, most states consider your credit record when determining your auto insurance rate. Good credit and good driving records are both indicators of lower accident risk.

Your vehicle. Some vehicles are more costly to repair, so if yours costs a lot to repair, your insurance rate will reflect so.

Discounts available. Depending on your insurance carrier, there are discounts available to you that affect your rate such as multi-car discount, anti-theft credit, homeowner benefit, paying your premium in one or fewer installments, etc.

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