10 Factors that affect your Car Insurance rates

Auto Insurance Tips

Car Insurance providers don’t provide you with the insurance rate of your vehicle. The auto insurance rate are calculated carefully considering many hypothetical factors namely your personal and other non-personal information like Age, Gender, Geographical Location, Marital Status, Driving Record, your Driving Experience, Claims History, the coverage of your previous insurances, credit history, the miles driven annually, vehicle use, deductibles, coverage, vehicle type, etc.

Each insurance company considers their preferred formula for rate variable calculations, and this is the main reasons for the variation in the insurance rate, they can even vary by hundred to thousand dollars.

According to J.D Power, the Consumer Research firm, most of the vehicle owners and drivers do not go for the right insurance policy they need, only 40 percent of them are switching to different policies in a year and those individuals are saving plenty of amount on the premium insurance plans annually.

The research has found that the car drivers are spending more money on their car insurance in the last few years, this can only be reduced if you are keen on selecting the right car insurance with mandatory factors.


— Ten things you need to be aware of while selecting your Car Insurance policy
— Your Address
— Different Car insurances and what type of coverage you need?
— The Credit Score
— Your Age
— Your Marital Status
— Your Vehicle Type
— How you have used your Vehicle
— Licensed Drivers
— Your Driving Record
— History of your Claims and the Prior History of your Insurance

Ten factors you need to be aware of while selecting your Car Insurance policy

Proceed below for the factors you need to be watching out while getting your vehicle insurance.

Your Address

The first important thing to note when getting an auto insurance plan is the address where you park your car, yeah the location has the significant impact on the premium car insurances.

Auto Insurance agents will prefer knowing about your neighborhood more than you know them, they will know about the number of persons living nearby your location, the crime rates happening around your place, the number of claims severity happening annually, the weather pattern in order to know the risk of natural calamities etc before providing you the car insurance rate.

Car Insurance rate can be found accurately with plenty of tools online, and they just ask your state Zip code for showing the results.

Different Car insurances and types of coverage you need

Most of the insurance agents and other experts will encourage getting the insurance coverage’s online as there are high chances for getting the insurance with low premium rates, the quotes of these premium differ even in hundreds and thousands due to the calculation factors of the insurance companies.

You can check out the insurers online and decide which would be the right car insurance for you in a couple of minutes, this not only makes your shopping easy but also saves a lot of money and time.

It's okay if you change the premium car insurance once a year to experience the lower premium rates, shopping is most important in the case of an accident or ticket present in your record, and this can make you appealing to a different number of insurers agents.

Moving to a new location, getting married or having a driver will make your car insurance rate low, know your ideal limits of the car insurance policy you have chosen before gathering the quotes of different insurance companies.

The Minimum Liability Insurance rate will get varied based on the states you live, but will not have enough benefits to protect you completely. You should be aware in picking the car insurance with desirable benefits in a liability coverage of an insurance policy to safeguard you and your property when facing an accident or other issues like theft.

Related: Know more about Liability Auto Insurance Cover

Make sure you at least have 100/300/50 in your liability premium coverage insurance, to know more about these details have a look over this blog.

You should also have the comprehensive and collision insurance registered if you need your car repaired if it’s damaged or hit by third party vehicle, when damaged due to fire, theft, due to the natural calamities and other similar situations. You need the comprehensive car insurance for maintaining the value of your vehicle, and they can provide the amount neglecting the deductible if your car is under theft.

Going for higher deductible means you are saving more money, the deductible is possible with both collision and comprehensive auto insurances.

The Credit Score

Most of the insurer agents prefer to check out your credit score to calculate the car insurance rates, if you have a lower credit score then you will need to pay high whereas higher credit score means fewer premium rates.

Your Age

The age also has a more significant impact on the car insurance rates especially if you are in your twilight years or young. According to the IIHS ( Insurance Institute for Highway Safety), the fatal crash rate for young people is three times high when compared to the drivers above the age of 20 years.

The other side indicates that older drivers have faced with more accidents rather than the young age peoples, the fatal rate of this crashing during the crash increased day by day.

Your Marital Status

Statistic says that unmarried drivers have more accidents when compared to the married ones, in some insurance agencies married owners will be provided with fewer premium rates. You can get combines policies with your spouse to decrease the premium more.

Your Vehicle Type

What type of car you drive is also considered in calculating the auto insurance rates, the model of the vehicle will be noted for checking the claims record made by the vehicle. For, e.g., if any young aged drivers have faced more accidents with the same car type, then your premium rates will be high.

Make sure you have the VIN (Vehicle Identification Number) with you when applying for the new plans.

How you have used your Vehicle

The vehicle you use will also have a significant impact on the premium rate calculation, and if you are using your vehicle for part time jobs like a delivery agent, then you need to disclose this to the insurer agent for making your premium lower.

Not disclosing the reason will result in denying of claim when faced with an accident or other issues.

Licensed Drivers

Make sure you list out every member who has a driving license in your family to the insurance agent when applying for the car insurance plans, omitting someone will lead to denied claims or cancellation of the insurance plan during an accident or other issues.

If you have taken a license for someone in your family after getting the coverage plan then make sure you add the teen name immediately to the list.

Your Driving Record

The critical factor for calculating the car insurance rate is knowing your driving record, and this will help the agent to understand about the risk of the driver quickly. They will check this record when you apply for the coverage or when renewing them.

If they found more violations in your driving record, then the premium car insurance rates will be desirably high. If you think you can provide the wrong information and if the company finds them then there are chances for your premium to increase to a high number.

History of your Claims and the Prior History of your Insurance

Not only tickets or accidents will increase your premium car insurance rates but also the claims can do it, yeah fault claims will result in high premium rates and this will get increased if they found the same error again.

For more information read our blog on Complete Guide on Car Insurance in UAE

Hope you check for the above factors before you apply for the car insurance and know the rates as per your requirements. Any other factors you know that has an impact on the premium car insurance rates? Let us know through the comment section below.