Factors affecting car insurance rates

Once you buy an insurance cover, then it is usual hat you will be paying monthly premiums to the insurance company. How high or low the premium will be determined by several factors. Some of the factors could be your personal situation like family and location or could be factors like the kinds of insurance services you require.

Type of vehicle:

Do not be fooled. Insurance carriers usually conduct analysis and evaluations to determine the safety standards of different models of vehicle and this they will use to determine the rate at which they insure your car. This is the most important consideration that insurance companies look at when a client applies for car insurance. The safer the car the better premium rates you will get. They will also consider how susceptible to damage or theft your car is. The age of your car is also something that will be use to determine the rate at which your automobile will be insured at.

Your driving history:

This will greatly influence the determination of the rates you will be given. If you have already been involved in accidents then you know you may attract higher rates compared to someone who is a clean driver with no accidents or incidents to his record. This is because auto insurance companies use this history to calculate how likely it is that you will be in need of their insurance services.

Credit :

This is where you wonder how your credit score is related to insurance premiums but its true that insurance companies check that. This has been a controversial issue but has refused to change anyway. It is argued by insurers that how an individual manages his finances is directly reflective of how many claims they are likely to make. If your credit score is on the lower side then you may attract higher car insurance premiums.

Amount of deductibles:

A deductible is the amount of money that you commit to pay to cater for damages and theft or accidents before the insurance company steps in. When you agree to a higher deductible, you assume the greater risk and so the insurance company is likely to set a lower monthly premium rate. In this case the insurance company will be lower costs in the event of an accident or theft.

Drivers licensed years:

If you are a newly licensed driver, the insurance companies assume that you are more likely to be involved in accidents and so a news driver will be charged a higher monthly premium rate compared to one that has held their license for a long time.

All in all purchasing auto mobile insurance is a costly affair. You can however lower the rates of your premiums by ensuring that you have a clean driving record, a good credit score or by setting a high deductible amount . You may also consider taking up several covers from the same insurance provider for instance you can bundle up your auto insurance with health insurance and home insurance from the same insurance company.

Compare Rates

It is easy to get lost when shopping for a car insurance cover. That is why it is important to get quotes from different car insurance companies before choosing which one to work with. It is usually a very important step to consider whether you are looking for health insurance or car insurance. We will provide with all the necessary information you need to help you compare different affordable car insurance.

Most people looking for car insurance companies usually fall into the trap of falling for the best advertised or popular insurance company that may not be as suitable for your needs. Comparison is what will save you from making a choice that may be regrettable in the future.


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