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Car Insurance and the Factors that Affect its Rates


Driving history, type of vehicle, age and gender of the driver are some of the factors that are considered by service providers when computing for the car insurance rate of their policyholder.

  • Driving History

A motorist with a flawless driving history will surely have an insurance premium that is affordable compared to someone whose driving record is full of tickets, etc. Tickets and traffic violations only mean one thing to providers, that the person who has a lot of these on his/her record is not a safe driver, and the chances of him/her getting into an accident is way too high. And high probability of accident will only mean they will most likely pay up more frequent than other type of drivers.

  • Type of Vehicle

Luxury, sports cars and other fast and expensive type of vehicles have one thong in common aside from their price; it is that they give their owners higher premiums. This is due to the fact that they are theft-magnets. Aside from being expensive, sports car and fast cars are also accident prone type of vehicles, al of course they are fast.

In contrast cars that are not to expensive and not that fast, like mini vans, theft and the possibility of accident due to over speeding isn’t not that frequent so their owners are charged with lesser premiums.

  • Age

Adults are considered safe and less-risk type of drivers. This is because adults or aging from 25 to 45 years old, are normally professionals, people who earn their money and give value to their properties and would be responsible enough to drive carefully to avoid accidents.

While teenagers or young adults who are still dependent on their parents are somehow seen by car insurance companies that aren’t that responsible enough and will most likely be the ones to meet accidents easily and frequently. Even senior citizens are at the same way considered high-risk drivers, like teenagers. Because they may be responsible enough with their old age, but they aren’t that healthy enough to have well reflexes and senses.

  • Gender

Being male or female greatly affects the rate of your auto insurance. A lot of providers think that female motorists are less-risk type of drivers and give them lesser premiums compared to their male counterparts. This is because females are seen to be calmer compared to males that are seen to be easily gets angry. And calm drivers are indeed aren’t risky compared to fuming drivers.