Figuring out how much you need to pay for car insurance can be tricky. How your auto insurance rate is determined is based on multiple factors, including where you live, how old you are, your credit score, and the vehicle you’re buying, to name a few. There are factors you can control, and others you can’t. We’re here to explain what these specific factors are, and what you can do to get the best insurance rate possible.
You must have full coverage insurance when you finance a car – new or used – so it’s important to discuss this with your insurance agent beforehand, to determine how much your premium is going to be.
Car-Related Factors That Affect Auto Insurance
When it comes to the vehicle you choose to finance, you need to be aware of what affects your insurance premium, including these five factors:
- Safety rating – The better the safety rating a car has, the lower your insurance rate is likely to be.
- Vehicle size – Smaller cars have lower premiums compared to larger ones because they tend to get involved in more accidents. The engine size can also affect the premium, too. If you have a sedan with a V6 engine, it’s going to cost more to insure compared to the same model with a four-cylinder motor.
- Vehicle age – Newer cars are generally more expensive to insure than older models.
- Theft risk – Some vehicles are more prone to being stolen, and if the car you choose has a greater than average theft rate, you can expect your premium to be higher.
Demographic Factors That Affect Car Insurance
Many of the factors that affect your auto insurance rate are things you can’t control, and can make qualifying for a lower insurance rate difficult:
- Gender and age – Unless you live in California, your gender and age affect your insurance rate. Generally, younger men have higher premiums than younger women, and older men have lower premiums than older women.
- Marital status – Getting married can lower your insurance premium greatly, especially if both you and your spouse have good driving records.
- Where you live – Some areas have higher rates of vehicle thefts and/or accidents.
- Credit score – In some states, your credit score plays a factor in determining your insurance premium. The better your score, the lower your premium is likely to be.
- Profession – Your profession can also affect your car insurance. If you spend more time on the road because of your job, the insurance company is likely to put you in a higher-risk category and increase your premium.
- Driving record – If you have a clean driving record, your premium is likely to be lower. If you have multiple moving violations and/or accidents, your premium is likely to be higher.
The Bottom Line
Determining the average auto insurance rate is tough, because it depends on so many different factors. There are some things you can control, such as your driving record and credit score, that can raise or lower your insurance premium. There are also factors you can’t control, such as your age, that, unfortunately, can be a driving factor in your insurance rate.
Once you have an idea of your premium, or use our resources to shop for car insurance, come to us to find a dealership to work with. At Auto Credit Express, we’ve been helping credit-challenged consumers get the financing they need for over 20 years by connecting them to local special finance dealers.
All you have to do to get started is fill out our free and easy auto loan request form, and we’ll get right to work connecting you to a dealership in your area.
