Car insurance rates are not usually arbitrary numbers made by auto insurance providers. They are keenly thought out calculations. Using your personal information and their claim data, companies come up with a particular amount of money that will be payable to you whenever you make a claim.

The riskier your situation is, the more you will be paid and the safer you are, the lesser your claim will be. Here are some of the risk factors that insurers consider when determining your rates;

1) Geographical Location

Your geographical location can inform your insurer about many risks. From your ZIP code, your insurer can check the frequency of car vandalism, damaging weather as well as accidents in your neighborhood. If you live in a place where accidents are prone, then your insurance is likely to be high.

2) Age

The younger the driver, the higher the car insurance rates. This is because most auto insurance companies view young people as immature and novice. Young people are known to drive under alcohol influence, increasing the chances of accidents taking place.

3) Gender

Males are prone to having car accidents as compared to females. This is because males are usually aggressive behind the wheels as compared to females; they rarely take precautions. Car insurance rates for males are likely to be higher than that of females. Some states allow auto insurers to discriminate between gender when coming up with insurance rates; if you are not satisfied with your car insurance rates then Derrick Law firm has legal solutions for you.

4) Marital Status

Married couples are usually viewed as less likely to have car accidents when compared to their single and divorced counterparts. Married couples are found to be less active and safer behind the wheels as compared to their single counterparts. Married couple car insurance rates are usually 6 to 14% lower as compared to single people.

5) Driving Experience

If you do not have driving experience, then you are likely to have a higher car insurance rate whether you are sixteen or fifty in age. Teens are the most affected in this category; they are young, novice and careless.

6) Driving Record

If you have a clean driving record then you are likely to have access to low car insurance rates as compared to having a history of reckless driving. Auto insurers consider drivers with a dirty driving history as having higher chances of repeating the same mistake. Some people may not always agree with this factor and view it as an unfair way of increasing car insurance rates. If you are one of these car owners, then Derrick law firm has legal solutions for you.

7) Credit History

This is usually controversial yet most auto insurance companies are beginning to consider when generating your car insurance rate. Research has shown that people with low credit scores are likely to file more claims, file inflated claims, or even commit insurance frauds. So if your credit scores are low, you should expect your premiums to be high too.

8) Previous Insurance Cover

People without a lapse in auto insurance coverage are likely to have better car insurance rates as compared to those who had a lapse even for a day in their previous insurance coverage

9) Vehicle Type

The type of car you have determines the amount of money you will pay for the car insurance rates. This is because different vehicle models are driven differently. Therefore, the risks of accidents differ from vehicle to vehicle.


Car insurance rates are calculated based on many factors. It would help if you always considered these factors before choosing an auto insurer for your vehicle.