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5 Must-Know Factors That Affect Car Insurance Rates

To get on the road legally, you have to have car insurance. Some see car insurance as a necessary evil, believing that they’ll never use it because they drive safely. However, the truth of the matter is that no matter how safe of a driver you are, there’s always the chance that you’ll get into an accident with someone who isn’t so careful, and you’ll be kicking yourself if you don’t have a solid insurance plan.

To get a good rate, you need to know the factors that affect car insurance rates. That way, you can ensure that you know how to drive and act in a manner that will result in a favorable rate.

1. Age 

One of the most significant factors that affect insurance rates is age. The older you are, the less your rates will be. This is because the age group that gets into accidents the most are young teenagers who have just started driving.

This group is the most susceptible to getting into an accident because they’re new to driving on public roads. In addition, teenagers also have a reputation for being less attentive while driving, resulting in more accidents.

2. Length of Driving History

Another important car insurance rate factor is the length of your driving history. If you’ve had a license ever since your sixteenth birthday, you’re in luck. The longer your driving history, the lower your rate. The logic is that those with longer driving histories have more experience and capability behind the wheel.

If you just got your license recently, however, then you’re probably looking at paying a rate far steeper than those in your age bracket.

3. Car-Related Statistics

The car that you choose to insure will also have a significant impact on what your rate looks like. This isn’t just related to the value of the car, although higher value cars will of course be more expensive to insure.

it also depends on other car-related statistics. For instance, a sports car is more likely to driven fast and get into accidents than an economy car. Thus, insurance rates on a sports car are typically far above those on a family sedan. Learn more about insuring cars.

4. Prior Violations

If you’ve had prior citations for your driving, then you can expect a jump in your rate for each one. Whether it’s a speeding ticket, reckless driving charge, or even something as minor as not signaling a lane change, prior violations indicate to insurance companies that you may not be a reliable driver.

The sad result is that you have to pay more.

5. Insurance History

Last but not least, insurance history is a big factor. If you’ve never before been insured, then companies don’t have a good handle on whether or not you’re going to be filing many claims. Thus, they charge you more.

Know the Factors that Affect Car Insurance Rates

There you have it — now that you know the factors that affect car insurance rates, you’re ready to start changing your driving habits to suit a lower insurance premium.

For more auto advice, be sure to check out the rest of the articles on the website!