9 Factors That Affect Car Insurance Rates

Driving is a skill that takes time to develop. Safe driving, on the other hand, is mostly a state of mind.

Insurance companies track many factors that correlate with safe driving and price their auto policies accordingly. Gender and age are two of the most important. Another element that carries significant weight is marital status. But what other factors affect car insurance rates?

According to Neuroscience News and Psychology Today, recent studies continue to show that men are more likely to engage in risky activities than women. This includes behaviors such as reckless driving, smoking, heavy drinking and involvement in hazardous occupations.

It takes years of driving to develop the skills, awareness and prudence to be a truly safe driver. The U.S. Department of Transportation statistics show that young drivers, ages 16-19, are three times more likely to cause fatal crashes than more experienced drivers, ages 30-69. The differences are even more pronounced for young male drivers.

Young people pay a premium for the privilege of driving—or maybe their parents do. A person is considered a “youthful driver” until age 25, which is generally when the penalty begins to level out.

You may wonder, “Does marital status affect car insurance?” The answer tends to be yes.

Being married will generally qualify you for a healthy discount on your car insurance. Individuals who are married are often viewed by insurance companies as more stable and, therefore, less of a risk.

That’s the upside of getting insurance as a married person. The difference is greatest for younger male drivers, who will see the biggest drop in premiums once the cake is cut and the bouquet is thrown.

The downside is that insurance companies will factor both spouses’ driving records—and credit histories—when creating a quote. If the person you marry has multiple accidents or citations, you may end up paying more.

Depending on the violation, a single speeding ticket can increase your auto insurance rate by about 25%, and a single accident claim of $2,000 can cause a driver’s rate to increase by over 40%.

Additionally, people who live in highly populated cities will pay more for car insurance than those living in suburban areas. This factor affects car insurance rates because high-density cities tend to have higher rates of theft, vandalism and car accidents.

Not only can your credit score directly impact the amount of your insurance premiums, but studies have shown that people with better credit scores also tend to be safer behind the wheel.

Maintaining a 3.0 GPA or higher can result in a good student discount of up to 20% with most insurance companies. Students won’t get penalized for bad grades, but they also won’t qualify for the discounts. These discounts can apply to both high school and college students.

Having a college degree may qualify you for additional discounts. While some view this as a penalty for those without higher education, statistics show that people with only high school diplomas tend to present more overall risk of collisions.

People in certain occupations—especially high-stress jobs that involve lots of overtime and sleep deprivation—are at a higher risk for accidents.

The age, size and safety features of your vehicle, along with the replacement cost if it’s totaled and how often vehicles of the same make and model are stolen are all factors that determine your rate.

The insurance coverage you choose is another factor that affects car insurance rates. Typically, the more coverage you have, the higher your rates could be. Some coverage options include:

• Liability
• Uninsured motorist
• Collision
• Comprehensive
• Personal injury
• Medical expense

Don’t settle for the minimum insurance required by your state—not having enough car insurance could be a financial disaster if you’re in an accident.

Discover how Mountain America can help

If you think you’re doomed to pay a hefty cost as a result of these categories, give Mountain America Insurance a call, or get a free quote online. We’ll help you get the coverage you need at a competitive rate.