What Has the Biggest Influence on Your Car Insurance Rates?

Car insurance premiums are known for fluctuating from driver to driver and insurer to insurer. This isn’t simply at random, however. There are specific factors that influence the cost of your car insurance rates, although some of these factors have a bigger influence than others. 

The largest factors affecting your car insurance rates include: 

Driving Record 

Your driving record is possibly the biggest factor in determining your car insurance rates. This is because different accidents and violations can remain on your record for years, meaning your rates will be affect as long as your driving record is affected. For example, a single at-fault accident can remain on your driving record for three to five years whereas a DUI can last on your record for 10 years depending on the state. It is crucial for drivers to drive defensively and avoid distractions on the road. 

Age 

The age of the driver also plays a role in car insurance rates. Younger drivers, especially teenage drivers, tend to pay more for car insurance due to their statistical likelihood to participate in dangerous driving behaviors and file car insurance claims. Drivers may generally see a drop in their auto insurance rates at the age of 25 and may not see an age-related rise until they are in their sixties. 

Credit Score 

Not only can your credit score affect how much you pay for car insurance, it can also affect your ability to even get a policy. Insurers view your credit score as an example of how reliable you will be in paying your car insurance premiums on time and in full. A low credit score may mean higher insurance rates. You can build credit by paying off debts, loans and credit cards. 

The Vehicle Itself 

In some cases it is not factors specifically to do with you that can affect your rates, but rather your choice in vehicle. Higher valued vehicles will generally cost more to insure, but aspects such as the vehicle’s safety rating and anti-theft system can also come into play. Vehicles with a higher safety rating can actually save you money on car insurance by lowering the severity of an injury claim. 

On the other hand, sports cars and vehicles modified for speed will generally cost more to insure as they are more frequently involved in dangerous or high speed accidents.