Posted on April 05, 2016
Yes, These Details Impact Your Insurance Rate

I don’t have any speeding tickets. I have never been involved in an accident. I drive an old vehicle. But, my car insurance rate is still higher than some others!

Does this sound familiar? If you find yourself uttering these words, it is time to review your car insurance policy in an attempt to better understand why you are paying what you are paying.

Everybody knows that speeding tickets lead to a premium increase. The same goes for at-fault accidents. However, your car insurance company looks at much more than this. In fact, there are many overlooked details that have a profound impact on your rate. These include:

1. Engine Size

It may not make sense to you, but car insurance companies have no problem understanding it. The bigger the engine the faster you can drive. And the faster you can drive, the greater chance there is that you will be involved in an accident.

If you are in the market for a car, this is something to think about. You may want to spring for the six cylinder model, but a four cylinder engine could help you save on the cost of insurance.

2. Type of Vehicle

Does it cost more to insure a Chevy Corvette or a Ford Taurus? Even if the vehicles are the same model year, the Corvette will always be more expensive. There are many reasons for this, including the fact that the vehicle costs more to repair. Along with this, it has a bigger engine (see above), making it much easier to push your limits.

3. Gender and Age

Many people don’t understand how gender and age impact their car insurance rate. You don’t need to fully understand it, but you do need to realize it is 100 percent true. Typically, men incur higher rates than women. This is even more so the case in the 18 to 25 age group. The reason is simple: men are stereotyped as being bigger risk-takers on the road. While your gender won’t change, your age will. As you get older, there is an opportunity for your premium to decrease.

4. Marital Status

Just the same as gender and age, you may find it difficult to understand how this impacts car insurance rates. 

Statistics show that married people have fewer accidents than single individuals. When you get married, you can expect your rate to dip. How much, of course, depends on your driving history, among other factors.

5. Credit Score

A good credit score is important for more than securing a low interest rate on a car loan. Although credit scoring is not used for rating on personal auto, It can lead to lower home insurance premiums.

There is no “cut off point” at which your credit score impacts your rate, but here is what you need to remember: the lower the score the higher the premium. This is yet another reason to take great pride in a high credit score.

What are your thoughts on these five details that impact your car insurance rate? Can you make any changes as a way of saving money? 


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