7 Factors That Affect Your Car Insurance Rates

by Kanopy Insurance


If you recently got car insurance quotes and wondered why you were being asked a lot of questions about your lifestyle, these things all contribute to the calculation of your bill. Insurance companies base risk on some key factors; here are seven factors that affect your car insurance. Take them into account when searching for auto insurance quotes.


7 Things Affecting Your Car Insurance 

1. Age

You might be the perfect driver, but studies show that younger people have more accidents than older drivers. This is particularly true for the under-20 age group, and that's why car insurance premiums can be costly for young people who just got their driving license. The risk increases again when people get into their 70s and 80s.

2. Where You Live

Where you live can impact the cost of a car insurance premium, even in different parts of the same city. Some neighborhoods have a higher risk of car theft or vandalism, so the insurance premiums are higher in these communities. This is why car insurance companies are charging more to minority populations who live in those areas.

3. Mileage

Believe it or not, your annual mileage can affect the insurance you pay. If you drive a lot of miles each year, you'll most likely pay a higher premium than someone who travels less. This is because people with a high annual mileage are on the roads for longer and statistically more likely to have an accident. Commuters often pay more for their insurance because they drive in heavy traffic and are considered more accident-prone.

4. Previous History

If you have a history of accidents or traffic violations, you'll see your insurance premium rise. This is because you are more likely to have an accident than people who stay out of trouble. If there is one good reason not to jump that traffic light and drive at the posted speed, this is it. Get caught, and your payments will increase apart from any penalties from the police.

5. Where You Keep the Car

If you have a garage or a driveway, your insurance premium may be less than drivers who keep their cars on the street overnight. This is all to do with the risk of a vehicle getting bumped or stolen at night if it is on the street. However, some well-lit roads in a good neighborhood are considered more secure than a driveway. A car in a garage is considered even more secure. Drivers can sometimes improve their insurance rating by having an alarm installed on their vehicles.

6. The Car Itself

The type of car you own will affect the insurance premium you pay. Sports cars and other desirable brands tend to be more expensive to insure. An old, poorly maintained car can be more expensive too because it is considered a hazard to other drivers. However, insuring classic vehicles can work out cheaper; their owners are renowned for maintaining them to a high standard.

7. The Claim History

If you have made a significant number of insurance claims over the past few years, it can affect the premium you pay. Claiming for thefts, damage or accidents can add up and build a picture of the level of risk an insurance company will cover. If you have a no-claims bonus with your insurance, it is vital to protect it so that if you do have an accident, it is not affected.

By understanding the issues that impact car insurance price, you can consider small changes to reduce the cost.

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