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Factors That Determine Auto Insurance Rates

Woman driving car

If you’re like most people, you’re well aware that if you are convicted of driving under the influence (DUI), or if you get a speeding ticket, it is almost guaranteed that it will impact your auto insurance premium. But, did you know that that’s only the beginning? There are actually several factors that impact how much you pay for auto insurance.

From where you live to the type of car you drive to your marital status – there are a number of things that can determine your auto insurance rates. Let’s take a closer look at the various factors that influence how much your auto insurance costs:

  • Your gender: Statistically, men get into more accidents than women. So, whether a male is 16-years-old or 36-years-old, he will usually have higher insurance premiums than a female the same age with the same driving record.
  • Your marital status: Married people tend to have a lower rate of car accidents, so if you’re married, this could reflect through lower auto insurance premiums.
  • Your driving record: If you have moving violations, they could translate to higher insurance premiums.
  • Your age: Younger drivers have a higher proportion of accidents compared to older drivers simply because of lack of driving experience; therefore, they cost more to insure than their older, more experienced counterparts.
  • Your driving experience: If you’re 25 or 40 and you just got your driver license for the first time in your life, your insurance may be higher because you’re inexperienced at driving.
  • Where you live: If you move from a big city to a rural area, you may notice a significant drop in your auto insurance rates. This is because there are more auto thefts and vandalism in big cities and suburbs than small towns. As a result, people who live in small towns usually pay less for auto insurance.
  • The kind of vehicle you drive: If your vehicle is expensive to repair or replace because it’s a rare car, or because it’s an expensive automobile, it could cost more to insure it.
  • Your credit score: This one surprises a lot of people, but it can be an important factor. Usually, the lower the FICO score, the more the insurance. Why? Because insurance companies have found that people with bad credit are more likely to commit fraud.

We hope this information helped you better understand the various factors that determine a person’s auto insurance rates. If you need to file a car accident claim in Sacramento, we invite you to contact Eliot Reiner, APLC at (916) 778-3228.

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