5 Personal Factors That Affect Car Insurance Rates

Car insurance rates vary on a person-to-person basis. There are a variety of personal factors that may affect costs for insurance. While many know factors such as age and driving history directly affect car insurance costs, there are other factors people may not realize can also have an effect on how insurance companies assess monthly premiums.

Here are five personal factors that affect car insurance rates:

1. Driver Profile
Your driver profile is basically a snapshot of your driving history and habits: how many miles you drive every year, history of accidents, traffic tickets, etc. The number of miles you drive every year helps insurance companies determine your statistical percentage for risk of having an accident—the more you are on the road, the more susceptible your car is to an accident and therefore the higher your premium may be. A safe driver profile indicates to an insurance company that you are less likely to be an insurance liability and the greater likelihood of having better monthly insurance rates.

2. Your Car
What kind of car you drive also affects your insurance premium. Not in the sense that red sports cars are automatically more expensive to insure but rather, insurance companies look at how much a car costs (its replacement value), costs of repairs and parts, as well as safety ratings to determine insurance premiums. A reliable, safe vehicle is much cheaper to insure than an expensive one with high repair costs.

Other aspects like anti-theft components or added safety features are also considered by insurance companies as an opportunity for reduced rates. 

3. Personal Info
Age, occupation, and where you live affect car insurance rates. Insurance companies assess statistical data to see how each of these factors pose a liability. They look for similarities and patterns in these groups related to insurance claims.

Statistically, a teenage boy has a higher likelihood of accidents compared with that of a 40-year-old man. As such, the teenager’s insurance premium will be higher than the adult male’s.

Insurance companies look at occupations to determine how much time is spent on the road as part of the job. An outside sales job is more likely to require the insured to be driving more often than the individual with an office job. Insurance companies see these types of occupations as greater risk for an accident or claim.

Where you live tells insurance companies a lot about how to assess insurance costs. They look at accident trends in your area, rate of car thefts, medical care costs, and costs for car repairs. Those living in more expensive areas or areas with a higher risk for insurance claims can be tagged with a higher monthly premium. 

4. Chosen Insurance Coverage
The amount of insurance coverage you choose as well as the deductible amounts you set affect what you pay in premium. Extensive coverage with low deductibles means higher premium costs. You can read more about how your deductible can affect your rate here.

5. Credit Score
Though this is a topic of debate in some states, insurance companies will often look at your credit score when assessing rates. According to insurers, how a person manages their financial profile speaks to their likelihood of the frequency of insurance claims they might file.

So, there you have it! Some of the most common factors that can influence your car insurance quote. There are other considerations made when calculating an insurance premium, be sure you have all the facts by checking out the Top Ten Car Insurance Myths we busted!

If you are looking to find an affordable car insurance rate, speak with one of our independent auto insurance agents to compare quotes from top carriers and see who offers the best rate based on your personal factors. 

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