8 Different Factors That Impact Your Car Insurance Rate

Purchasing your car can be a tremendously exciting venture. The feeling of freedom one gets while taking the vehicle for a spin is second to none. However, that freedom comes with a variety of factors as well.

Take, for instance, the issue of car insurance. When you are searching for an optimal rate of insurance, there are some dynamics that influence your package. Although it may seem like there are a myriad of factors affecting car insurance rates, focus on the more significant ones. As long as you maintain a clean driving history, you can always try to negotiate your way to a favourable auto insurance rate.

Here are the eight most common factors that affect car insurance rates:

Factor #1: Your Location

This is perhaps one of the most, if not the most, important factor that affect car insurance rates. Where you live, in accordance with other nearby areas, will have varying rates pertaining to coverage. For example, there may be more car accidents in your area than the region that is next to you.

Inevitably, the more collisions that are accumulated in your region, the more expensive your rate will likely be. The more people that live in your region, in addition, will also affect the insurance rate’s pricing. Thankfully, there are other factors that will work in your favour, if you are living in an unfavourable area.

Factor #2: Personal Profile

When a company like Keller and Associates is trying to grant you an applicable auto insurance quote, they will take a look at your profile. What constitutes that rate is predicated on a variety of interpersonal features, such as age and gender. Typically, young men are more likely to get into unwarranted collisions than their female counterparts.

The older you are, on the other hand, the less likely you are to get into an accident. However, depending on the demographics of the region, this may be likely to change. Although this will affect insurance rates for your vehicle, it isn’t tantamount to a drastic difference in actual cost.

Factor #3: Marital Status

Profile factors, for the most part, don’t have a significant impact on your car’s insurance package. However, areas such as marital status, will play a determining factor on your unique rate. Statistics have shown that married individuals have fewer accidents than their single counterparts. Add in a clean driving record, and this could considerably lower the given rate.

Factor #4: Profession

Insurers will also want to take a look at what you do professionally for a living. This is because if they find that your career favourably compares to a low risk of accident, your rate will be impacted positively. For example, a police officer looking for a vehicle may be regarded as a careful driver, as a result of their safety-driven profession.

Factor #5: Driving History

Like the location that you are living in, this is one of the single-most important areas affecting your car insurance rate. If you are a driver with a record of previous driving incursions, such as accidents or tickets, your rate will be negatively affected. In some cases, if your driving history is bad enough, some insurers may even refuse to give you a respective rate.

This latter point largely comes down to your perceived rate of risk. So, in order to increase your chances of receiving an optimal rate, drive safely! A clean driving record, with no past incidents, will work in your favour every time.

Factor #6: Activeness

The more time you spend on the road, the more likely you are to get into a potential collision. This logic may seem somewhat unfair, but insurers use it to determine if you are in a good position to receive a decent rate. In order to receive a potential discount on your rate, keep your activeness on the road as vigilant as you can.

Factors, such as keeping your vehicle in your garage, can also work to your advantage as well. The more well-kept your vehicle is, or the more potential you show for vehicle care, the better your rate will be in the end.

Factor #7: Car Size

The size of your vehicle may also play a factor in the insurance rate you are given. Larger cars, for the most part, are considered to be safer than smaller vehicles. This is because, if they are involved an accident, their body size usually results in mitigated damage. Just be sure to take into consideration the engine size as well, when looking for an applicable rate.

Factor #8: Car Age

The age of the model can also heavily impact your insurance rate. If a car is more likely to be demolished in an unforeseen accident, insurers will hesitate to issue an optimal rate. Newer vehicles will typically have better collision insurance rates than their older equivalents.