Car Insurance Rates 101

Curious what factors affect your car insurance rates? Did you know you have direct control over many of the things that determine your car insurance rates?

Below are most of the factors that can be used by car insurance providers to determine your premiums.

Age

Historically, drivers age 16-25 pay more for car insurance. Due to their lack of driving experience, car insurance companies assess young drivers as a higher risk, meaning higher car insurance rates. Read Full Article: Save Money After Adding a Teen Driver to Your Policy

Gender

In 2006, nearly 30,000 male drivers died in car accidents, while only 13,000 women suffered the same fate (IIHS). Men typically pay higher car insurance rates, especially male drivers age 16-25.

Accidents

Since your car insurance rate is based on how high of a risk you are to get into an accident, if you have been involved in an accident, your car insurance rates will increase. An accident typically stays on your driving record for 5 to 7 years, depending on what state you live in. Read Full Article: Accidents and Car Insurance Rates

Tickets

Much like with accidents, getting tickets will increase your car insurance rates. The more tickets you have, the higher your car insurance rate will be. Tickets can stay on your driving record for 3-5 years depending on what state you live in. Read Full Article: Tickets - Car Insurance Rates

Location

Where you live has a profound affect on your car insurance rates. When you move, it is important to update your current car insurance policy and compare multiple quotes to find the best car insurance rate. Read Full Article: Changing Your Address Affects your Car Insurance

Education

Some states allow insurance companies use a person's education level as a factor when determining car insurance rates. Generally speaking, the higher the education level, the lower the car insurance rates.

Occupation

Your occupation could have an impact on your car insurance rates. Some car insurance providers consider your occupation when determining your rates.

Annual Miles Driven

How many miles do you drive a year? The fewer miles you drive the less chance you have of getting into an accident. Read Full Article: Driving Less Means Lower Car Insurance Rates

Marital Status

Most car insurance providers perceive someone who is married as being more responsible and will reward married couples with lower car insurance rates. Read Full Article: Free Car Insurance Quotes - When to Compare

Credit Score/ Insurance Score

Your credit score can be used by car insurance providers as an underwriting factor when determining your car insurance rates. If you have an above average credit score, then you could be paying less for your car insurance. Likewise, if you have a below average credit score, then you could be paying more. Read Full Article: Credit Scores and Car Insurance Rates

Rental Car Coverage

Rental car coverage usually pays $20 to $35 a day for you to rent a car while your car is being repaired. This coverage isn't required but it could be a good investment. Of course, having additional coverage will result in a higher car insurance rate. Read Full Article: Choosing Optional Coverage Levels

Roadside Assistance

If you already are a member of a Roadside Assistance program, you don't need to add this coverage to your car insurance policy. Any extra coverage you can remove from your policy can help lower your car insurance rates. Read Full Article: Choosing Optional Coverage Levels

Type of Car You Drive

Drive a flashy sports car or a limited edition SUV? If so, you are more than likely paying more for car insurance than someone who drives a family car. The average claim amount for your make and model, how often the make and model are stolen, and how safe it is all have an affect on your car insurance rates. Read Full Article: Safety Ratings and Car Insurance

Comprehensive Coverage

Comprehensive coverage will pay for any damages to your car that isn't collision related. So if your car is vandalized, stolen, or damaged by a fire, your comprehensive coverage will cover the damages after your deductible is met. You are not required by law to carry comprehensive coverage so the amount of coverage you do decide to get depends on your personal status. Read Full Article: Choosing Optional Coverage Levels

Collision Coverage

Collision coverage will pay for the damages caused by a collision, either with another car or with a stationary object. The amount of collision coverage you decide you need will affect your car insurance rate. Read Full Article: Choosing Optional Coverage Levels

Personal Injury Protection

This is the most basic no-fault coverage that will pay you or anyone riding in your car a minimum benefit amount per person regardless of who's at fault. The minimum coverage level varies from state to state. Read Full Article: Choosing Optional Coverage Levels

Uninsured/ Underinsured Motorist Coverage

This coverage protects you if you are involved in an accident where the other driver either doesn't have car insurance or doesn't have enough coverage to cover the damages to your car and/or any medical bills. Essentially, this coverage takes the place of the insurance that the other driver should have had. Read Full Article: Choosing Optional Coverage Levels

Deductible

The deductible is the amount of money you will be required to pay before your insurance kicks in. The higher the deductible, the lower your car insurance rates will be. But remember, the higher the deductible, the more money you will have to pay out of pocket. Read Full Article: Car Insurance Deductible Debate

When shopping for a car insurance policy, it's important to know what coverage levels you have control over, and to make sure you don't pick the lowest amount of coverage hoping to save an extra buck or two. The best way to save on your car insurance policy is to compare car insurance quotes at InsuranceRates.com