Factors Affecting Car Insurance Rates

Factors Affecting Car Insurance Rates

Car insurance rates are not calculated on the basis of any one factor. There are various rating factors that affect car insurance rates. Every car insurance company uses different rating factors to calculate the car insurance rates according to their own rules and guidelines. Car insurance rates are not the same for everyone. Car insurance rates depend upon your rating factors. If your rating factors are less risky, then car insurance companies charge lower car insurance rates. MyMoneyMyQuotes team provides information regarding the factors that affect car insurance rates. Following are the important rating factors used to determine the car insurance rates by the car insurance companies:

Age

The age of the drivers is the main factor that affects car insurance rates. Car insurance rates are higher for young inexperienced drivers because they are likely to cause more accidents than the old age groups. Car insurance is provided to experienced drivers at cheap rates. Car insurance rates are high for drivers under the age of 21. Car insurance rates go down with the increasing age of the driver.

Driving history

All the car insurance companies use the driving record of the driver to determine the car insurance rates. The way you drive your vehicle is also an important factor that affects car insurance rates. Car insurance rates are cheaper for those drivers who maintain a good driving record. Drivers with a good driving record tend to file fewer claims than drivers with poor driving records. Car insurance companies sell car insurance policies at higher rates to those drivers who have violations or accidents in their driving records. 

Credit score

A credit score is another factor that affects car insurance rates. A credit score is considered by almost all the insurance companies to determine the car insurance rates. Car insurance rates are low for drivers who maintain a good credit record. Drivers who have poor credit records pay more car insurance rates than the others.

Driving experience

The driving experience is also a factor that affects car insurance rates. Drivers with many years of experience in driving can get cheap car insurance. Car insurance rates are high for less experienced drivers. 

Location

Car insurance rates are also affected by the area you live in. Car insurance rates are different in every state. Car insurance rates are high in high-population density areas or areas that are affected by natural disasters. Car insurance rates are low for those drivers who live in less-population density areas. 

Gender

Gender difference is a factor that affects car insurance rates. It is not used in all the states of the USA to decide the car insurance rates. Car insurance rates are different for men and women in some states where car insurance companies consider gender differences to determine car insurance rates. In some states, the law restricts the car insurance companies to consider the gender to calculate the car insurance rates.

Mileage

Annual mileage is another factor that affects car insurance rates. Car insurance companies offer car insurance policies at low rates to the drivers who travel less than 7500 miles distance in a year. Car insurance rates are higher for those drivers who drive long distances in a year. 

Marital status

Some car insurance companies sell cheap car insurance policies to married drivers. Young unmarried drivers pay more car insurance rates than married couples. Marital status is a factor that affects the car insurance rates used by some car insurance companies.

Claim history

Claim history is an important rating factor that affects car insurance rates. Car insurance policies are cheaper for those drivers who did not file any claim. Car insurance rates increase with filing insurance claims. 

Type of coverage

Type of coverage is a rating factor that affects car insurance rates. Car insurance rates are cheaper for those who purchase just a minimum insurance policy. If you purchase additional coverages such as comprehensive coverage or collision coverage as a part of your car insurance policy then it will be expensive for you.

Type of car

Car insurance rates also depend upon the type of car you drive. Car insurance rates are high for sporty and high-priced cars. Car insurance rates are low for cheap cars.

Insurance company

Car insurance policies are provided by different car insurance companies on different rates. Your car insurance rates also depend upon the car insurance company you select to purchase the car insurance policy.

MyMoneyMyQuotes is one place for all your auto insurance needs. The best thing about my money my quotes is that it provides you free auto insurance quotes. You can compare auto insurance quotes for free and find the best suited insurance policy.

  

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