January 31, 2020 • Car Insurance

Many factors can affect your car insurance rate

Each insurance company has many different criteria when evaluating an insurance application. Insurance companies have many guidelines that are different for each company, meaning that two companies comparing the same driver can arrive at vastly different conclusions. Simply put, the less risky your rating factors are, the cheaper your car insurance policy will be. 

Below are a few of the common factors that can affect your car insurance rate.


Age is a major rating factor used by insurers, especially for young drivers whereas, insurance companies view teen drivers as high risk. Some of the more expensive premiums are paid by teen drivers while in contrast the more affordable is paid by elders.  Data shows that teen drivers drive more recklessly and get into more accidents than do drivers in any other age group.

2. Gender

Gender primarily impacts rates for young drivers. A male teen driver is likely to pay more per year in car insurance premiums than a female teen driver. This is because car insurance companies see young male drivers as more likely to take risks than their female counterparts. The relatively safe driving habits of young female drivers result in their earning lower rates than teenage male drivers, on average. Some insurance companies also have special rates for female drivers in general which is also an advantage for female drivers.

3. Vehicle

Some makes and models are much more costly to insure than others. Insurance rates on a brand new sports car will be more expensive than premiums for a 1999 Civic. If a vehicle costs more to replace, the insurance company will charge you more each month to cover these potential costs (via collision and comprehensive coverage). You should also consider that insurance premiums vary widely between different models. Check it out on mibinsure.com before you go car shopping.

4. Claims History

Insurance companies view a long claims history as a red flag. Any insurance claim you file and any claim filed against you are included in your claims history. If your insurance company pays out a claim, you should expect your rate to increase. However, a good driving record will help to lower your rate. It’s called ‘no claims discount’.  No claims discount varies from insurer to insurer and can save you hundreds of dollars. Go to mibinsure.com to check it out.

5. Insurance Company

On e of the biggest factor in determining motor insurance costs is the insurance company you decide to go with. Car insurance rates vary from insurer to insurer and while there are other factors that comprise your driving profile, you could be paying too much for car insurance simply because your current company is too expensive. Shop around using MIBinsure.com where you can compare prices from 10 insurers. Don’t waste money on car insurance.

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