Varying auto insurance rates made easy


Everyone’s trying to save money these days, and auto insurance coverage is a particular area of interest for people needing to cut back. So, you may have decided to go look for a new auto insurance company or a better deal, and have found you aren’t getting much better then what you already have, or are in fact, getting worse. So, you’re confused and wondering just what is affecting your auto insurance rates. What is causing my rates to be so much higher then I think they should be? Well, there are many factors which will affect auto insurance rates. Here is some information for you to better help you understand the numbers you are being quoted.

Driving History

Driving history directly and dramatically impacts auto insurance rates. It’s rather logical as to why it affects your auto insurance rates so much. Auto insurance companies make their profits when paying subscribers to their auto insurance coverage DON’T get into accidents. Basically, the less accident prone people they have to insure, the more money they make.

So, those with few or no accidents on their record will have much lower auto insurance rates then those that have a mile long accident history rap sheet. It may seem like common sense, but to some people this is news. As well, if you get into more accidents after you have gotten the auto insurance coverage, you can expect your rates to go up a lot depending on how much it’s going to cost the company to pay for all the damage and hospital bills.


This can be a large factor when it comes to the rate you are quoted as well for auto insurance. There are two age groups that generally get discriminated against harshly.

  • Young Driver- These are drivers that are 25 years of age or under. Generally this age group has less driving experience, is more prone to reckless behaviour, and statistically gets involved in more accidents then their older counterparts. It’s unfair, but auto insurance companies will charge you more if you are a young driver as you have not yet proven yourself to be a reliable driver.
  • Elderly- This category is for drivers at 65 or over the age of 65. This age group has deteriating health and poorer eyesight and hearing and are statistically more prone to get involved in accidents or collisions as well. Again, this is unfair, but there are companies out there that specialise in insuring elderly drivers because they believe their age means more wisdom and experience with the road.


This is another factor that will affect your auto insurance rates. Mostly for males, despite the numerous jokes about women being bad drivers, men are far more likely to get into a collision then women. This will cause your rates as a male customer to be higher then that of a female customer. Again, this isn’t fair, but this is one of the things the auto insurance companies judge by.

Credit History

Many people will be surprised to learn this, but credit history plays a role in your auto insurance rates. It will affect how much coverage you are eligible for, and even if you can get auto insurance with that company. Companies look for people that will actually pay their premiums so this is something they will definitely look at when giving you a rate.