What Affects Car Insurance Rates? 4 Surprising Factors That Increase Prices

Car Insurance Rates

The average American pays around $2,388 per year in car insurance—no small figure. Is your car insurance policy more expensive than you’d prefer to pay?

If you’re getting stung with high premiums, it helps to understand what affects car insurance rates. There are plenty of variables when calculating costs, like your accident history and car make and model.

However, that’s not all. Want to learn what factors affect your car insurance rates in addition to the above? If so, keep reading to find out!

1. Zip Code

Would you believe that your zip code impacts your car insurance rates? It’s true—your exact location could cause you to pay much more than others.

Unfortunately, this all comes down to statistics. Some areas have higher rates of accidents, car theft, and damages than others, which means policy-holders in these areas pay a premium.

If you’re planning a move, you might want to research which areas have the lowest car insurance rates.

2. Credit Score

In some states, this is illegal, but in other states, your credit score can have an impact on how much you pay for insurance.

When it comes to your credit-based insurance score, those with poor credit ratings are seen to have a higher financial risk, so they pay more for their insurance.

It may seem unfair, but always talk to your insurance company to learn more about their policies on credit ratings.

3. Your Age

Your age can also impact how much you pay. Generally, those under 26 are going to pay some of the highest premiums.

This is because younger people haven’t been driving for long so are more likely to be in a car accident. The good news is that your premiums decrease as your experience increases.

However, once you get into around the 65 and over age group, premiums start to increase again, as older drivers are also more prone to car accidents.

4. Ticket History

If you’ve had a few speeding tickets in recent years, there’s a chance that this will impact your monthly premiums.

However, do seatbelt tickets affect insurance? That’s a good question and something many people wonder.

The answer will depend on your insurance company, but yes, if you aren’t wearing your seatbelt, your insurance company might think you’re a riskier driver and will raise your premiums slightly.

Use These Tips to Learn What Affects Car Insurance Rates

Now that you know what affects car insurance rates, use this information when shopping for a new policy. With so many variables when it comes to car insurance, we know it can get confusing!

Our top tip is to compare multiple companies before making a decision, working out which insurer can get you the best coverage for the best price. Then, you’ll be able to drive with confidence that you’re protected on the road.

If this article was helpful, please keep reading to learn more.