3 Things That Can Affect Auto Insurance Rates

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Navigating the World of Insurance

The world of insurance is changing. While you used to have to meet up with an insurance agent in person to discuss your policy options, you can now begin a new insurance policy right online. When I first signed up for an auto insurance policy, I realized that signing up right online led to confusion when I didn't have an agent with me to discuss which policy was best for me. Thankfully, I realized I could chat with an agent right on the website. I then began researching insurance and learned a lot about many types of insurance during the process. I find the ever-changing world of insurance so interesting that I continue to research it and thought that I would help others by posting what I learn on a blog. I hope I can help you make good insurance policy decisions! Check back often for new posts!


3 Things That Can Affect Auto Insurance Rates

15 October 2017
 Categories: Insurance, Blog

When it comes to auto insurance, there are a variety of factors that are taken into account when determining rates. Each auto insurance company varies when it comes to using these factors to determine how much to charge. Because of this rates can differ greatly from company to company. While many factors that determine rates, such as age and gender, cannot be changed, others can. Here are three things that can affect auto insurance rates:

Credit History

Poor credit or no credit can cause more trouble than just making it difficult to get approved for loans. They can also make getting auto insurance more difficult. Some auto insurance companies put more emphasis on credit than others when determining rates for drivers. However, in general, those with excellent credit scores will have cheaper premiums than those who have bad credit or no credit. On average drivers with no credit pay around 65 percent more than drivers who have excellent credit scores. Drivers who have higher rates than they would like may want to take a look at their credit scores.

Type Of Car

When it comes to auto insurance, not all vehicles are equal. Some types of cars are going to be more expensive than others to insure. In fact, the type of vehicle and its age and safety features can play a big role in auto insurance rates. Cars with numerous safety features tend to be less expensive to insure. Higher safety ratings are something that can be a plus when it's time to get insurance. Older cars are also less expensive to insure. Replacing a newer car is far more expensive therefore the collision rates tend to be far higher for a new car than for an older car. Cars that are often stolen also tend to have higher premiums.


Location can also affect auto insurance rates. Living in certain areas will often mean higher insurance premiums. City-dwellers will often pay more since accidents are more likely in urban areas than they are in rural communities. Drivers that live in areas where certain types of weather are common can also end up with higher auto insurance rates. Areas with severe weather and winter weather often mean higher rates for drivers. Crime can also play a role. Drivers who live in areas with high crime rates will often find that they have to pay more.

When it comes to auto insurance, there are many factors that can affect rates. Things like a driver's credit score, the type of car they drive, and even where they live can have major impacts on their auto insurance rates.