What factors affect your auto insurance rate? How much does car insurance cost? Just like no two drivers are the same, no two insurance rates are the same. Even so, we can help you understand how car insurance is calculated and some things that generally help determine your car insurance cost, like your driving record and vehicle type.
Car Insurance Rate Factors Related to You
Your Driving History
Have you ever gotten into a fender bender one month, only to see your car insurance premium go up when it’s time for renewal? It can happen. If you’ve been convicted of a DUI/DWI or have a driving record that’s littered with serious accidents and a traffic violations, you can usually expect to pay more for car insurance than someone with a clean record and the same amount of driving experience.
Women tend to pay less for car insurance. Why? It all boils down to how insurance companies calculate risk. The riskier a driver is to insure, the higher their insurance rate can be. Why might an insurance company consider a man riskier to insure than a woman? Because men are routinely on the road more often and involved in more serious accidents.
According to the Insurance Institute for Highway Safety, “Men typically drive more miles than women and more often engage in risky driving practices including not using safety belts, driving while impaired by alcohol, and speeding. Crashes involving male drivers often are more severe than those involving female drivers.”
Older drivers tend to have cheaper insurance premiums than teenage drivers. The more experience you have at anything, whether it’s cooking, painting, or playing soccer, the better you tend to be at it! The same can be said about driving. The more miles you’ve logged behind the wheel, the less likely you are to be involved in a car accident—especially if you have a long driving record that’s free of tickets, accidents, and serious violations. Insurance rates head north again for senior drivers, though, as people’s vision, reflexes, and cognitive abilities can decline and make them more susceptible to accidents as they age.
Drivers in big cities and urban areas tend to pay more for car insurance than those in rural areas for two reasons. One, rates of theft and vandalism are often higher in big cities and two, auto repair and labor costs can be higher too. Parking your car in a secure, covered garage can help lower your auto insurance rate if you’re a city-dweller, as well as investing in a car with the latest anti-theft technology.
(Check out: What To Do If Your Car Is Broken Into)
If you use your car or truck to do activities related to your job or business (other than commuting), you may have to meet your state’s requirements for a commercial auto insurance policy. Depending on your state and the type of work you do, the cost of your commercial policy could be higher than your personal one.
Car Insurance Rate Factors Related to Your Vehicle
Newer vehicles often cost more to repair and carry more insurance coverage than older vehicles. As a result, newer cars and trucks usually cost more to insure than older ones.
Vehicle Size & Safety
The larger the car, the safer you could be in the event of an accident. Good safety ratings can translate into low car insurance rates. Road safety is a top priority for insurance companies!
Sports cars tend to be driven at higher speeds and by younger, riskier drivers, which makes them pricier to insure. High-performance car parts are also more expensive than parts for an everyday sedan. All of these costs can make sports cars pricier to insure than your typical minivan or commuter car.
In the end, you can’t always control the factors that impact your car insurance rate, like your age and where you live. You can control other factors, though, especially when it comes to where you choose to buy car insurance. Choose Direct Auto Insurance and we’ll find ALL the discounts you’re entitled to and help you determine the best policy for your needs.
If you have questions about your car insurance rate just call one of our friendly and knowledgeable insurance agents at 1-877-463-4732 today! We can help you understand your insurance rate and if you’re not already a Direct Auto policyholder, we may be able to hook you up with a lower premium! Want to see? Get a car insurance quote now!
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