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Criteria That Affect Car Insurance Rates

Criteria That Affect Car Insurance Rates Blog

If you’ve ever compared what you pay as insurance to what some of your friends, family or colleagues pay, you may have noticed some striking dissimilarities. Why is that so? What factors even determine what you pay as insurance? Are you being cheated by your insurance provider?As a vehicle owner and insurance policy holder, these are pertinent questions you have to find answers to. Luckily, that’s what we’re here for!

Hello and welcome to yet another episode of Insurance360 Video Series. I’m Fincrew brand ambassador, Stella and today, I’ll be hosting this video. So don’t miss out on other highly informative videos like this! Before watching further, take a moment to hit the Subscribe button and enable notifications so you get immediate updates every time there’s a post in this channel! If you’ve done that already, let’s dive right in! As you probably already know,car insurance rates are far from uniform. In fact, there’s no blanket price for any insurance policy. What this means is that what you pay as insurance is unique and tailored specifically to you and your surrounding situations. Many vehicle owners believe that reducing coverage rates and influencing what you pay as deductible is all that determines your car insurance rates. While these factors do affect your car insurance rates, they aren’t the only variables that influence it. In fact, multiple things affect what your car insurance rates ultimately amounts to. Some of these variables include:

  • Your age
  • Your gender
  • Your marital status
  • Your geographical location
  • Your driving history
  • Your claims history
  • Your Vehicle Mileage
  • The size of your vehicle
  • The age of your vehicle
  • The susceptibility of your automobile to theft

The list goes on and on. Interestingly enough, each of these factors weighs in differently. Consequently, some factors influence your car insurance rates more strongly than others! We’ll be briefly discussing a few of the more important factors now.

Your Geographic Location

The very first thing any insurer is likely to ask you is where you live. This is because the more urban and populated your area is, the higher the likelihood of accidents and ensuing claims. Several other risk factors are also derived and estimated from this variable alone.

Your Age

Many insurance companies operate on the premise that the younger a driver is, the more prone to accidents they are. This reflects in your car insurance rates. It is for that reason that slightly older people tend to have lower car insurance rates than younger individuals.

Your Gender

Yup!Sex factors in quite strongly here, too. Several studies support the fact that females on the whole tend to be safer drivers than males.
Insurance companies act on this information. And so, all other things being equal, males might find their car insurance rates higher than those of females.

Your Driving History

This is arguably one of the biggest determinants of how high or low your automobile insurance quotes are. A good driving history not only results in lower car insurance rates, it can help you claim amazing privileges like the No Claims Discount.

Your Vehicle Mileage

How far and how often you drive your vehicle also comes into play strongly here. If you’re a “home-work-home” driver, you can expect to pay significantly less than drivers who take their vehicles over longer distances more often.

And there you have it! Check out the other upcoming episodes from this Insurance360 video series for more details on other factors that may affect your car insurance rates! Thanks for watching. If you’ve not Liked and Subscribed to our channel already, don’t forget to do so now! See you next time!


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