Illinois – Factors that Affect Auto Insurance Rates


Some people think that insurance rates are set in stone by insurance companies and individual states. However, that is not the case. In fact, most drivers probably pay a much different rate than the drivers next to them, based on the discounts they qualify for and a host of other factors. If you want to make sure your insurance rates are affordable, it helps to know the factors insurance companies look at to determine rates of individual drivers. This article will give you some of the most common variables to consider when shopping for car insurance.

The Driver

The first factor insurance companies consider is personal information about the driver. People who are neither too young nor too old tend to qualify for better rates. In fact, men between the ages of 16 and 25 will probably pay some of the highest rates around. Older women also fare worse than aging men in this area. Insurance companies also see married people as a lower risk, so their premiums tend to be lower. Students are generally higher to insure, but a student with excellent grades may be able to get a break on price.

The Car

If you are in the market for a new car, you can check lists to find rating on the safest vehicle or the one most likely to get stolen. Typically, high profile cars cost more to insure because they usually make it to the latter list. Expensive foreign cars also cost more to repair, so insurance rates are probably going to be higher on these as well. Choosing a car with extra safety features or anti-theft devices may also bring your insurance premiums down significantly.

The Location

Some areas of the country charge more for insurance than others. States also vary in the amount of insurance coverage they require their drivers to have. For example, Illinois does not require drivers to carry comprehensive and collision coverage on their vehicle, or personal injury protection on themselves. They do, however, require drivers to carry a certain amount of uninsured motorist bodily injury, which is not a typical requirement for most states.

The Customer

If you have been a long-term customer in good standing with an insurance company, they may reward you for your loyalty with a discounted premium. Companies also offer cheaper rates for customers who insure more than one vehicle with them or combine their homeowners insurance with their auto insurance policy. Some companies will even discount rates for employees of certain businesses or members of some professional organizations. It never hurts to ask what businesses an insurance company might work with in this regard.

Finding cheaper car insurance begins with understanding the many factors insurance companies use to determine rates. By studying these variables, you will be able to negotiate the best rates for your individual coverage.