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Top Factors and Ways Which Can Make The Rates of Your Premiums Higher

Auto insurance is mandatory since there are many risks associated with driving. While vehicle owners look for affordable premiums, many tend to compromise on the extent of coverage in order to save as much as possible. However, compromising on coverage could prove detrimental and result in further financial losses. To begin with, you need to understand that several factors affect the premium you pay for auto insurance. Each insurance company calculates premiums according to their own policies. The higher the risk you may seem, the more you are likely to pay for coverage. There are numerous other factors including the age, mileage, the purpose of using the vehicle and much more, which can drive your premium rates in either direction.

Age - Immaturity Counts

While age may be on your side for many other reasons, unfortunately, this is one area that can affect your premiums significantly. Those under 25 are considered a greater risk. Generally, drivers between 50 and 65 are considered low risk by auto insurance companies.

Fairer Sex - Lower Premiums

This is one area where the fairer sex is at an advantage when it comes to auto insurance. Once again, insurance providers consider women safer drivers than men. However, with an increasing number of women drivers on the road, the gap in auto insurance costs is slowly closing in.

Single But Reckless

You may be single and ready to mingle, but this won’t help you lower your car insurance premium. If you are married, then you are lucky, since you can expect to pay less than a single person even with a good driving record. Insurance providers do consider this factor when calculating your premium.


If your job entails plenty of traveling, then your auto insurance premium is likely to be higher. An outdoor salesman is considered a higher risk than an accountant who sits in the office most of the day.

Where You Live Matters

The area you live in can have a great impact on your auto insurance premiums. If you live in a congested city with plenty of traffic, the risk of being involved in an accident is higher. The insurance company pays special attention to this aspect before they give you a quote. Areas that have a higher rate of vehicle thefts drive the cost of auto insurance higher. You will need to install a number of safety devices in order to keep premiums low if you live in a high risk area.

Driving History & Violations

If you have been booked for DUI, speeding, and reckless driving, your auto insurance premiums are going to be much higher than you think. Some insurance companies will even consider a five-year old violation and raise your premium. However, once your record improves the insurance company will begin to reduce your premiums.

Vehicle Model

Expect to pay much less if you own a small or mid-sized vehicle than a sedan or an SUV. Your status symbol will have a direct impact on your car insurance premium.

Accident Claims History

If you have a driving record free from accidents and made no insurance claims then you are at a distinct advantage when it comes to premiums. The more claims you have made the more likely your premiums will climb over the coming years.

Credit Rating

A poor credit history is suggestive of higher risk, and can drive your insurance premiums higher than expected. If there are any errors in your credit score, make sure you have them corrected as soon as possible.

Purpose of Vehicle

Vehicles used for business purposes attract higher premiums.

While these factors increase premiums, you ought to determine ways to make auto insurance more affordable. On, you can shop around and compare quotes from different insurers in an instant. Companies differ in the way their calculate premiums and perceive risks. Shopping on will make it easier for you to find affordable auto insurance.

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