Factors that Affect Auto Insurance Rates


There is one common thing we hear in our agency on an almost daily basis. We have numerous insureds asking why their insurance is more expensive than their brothers, cousins, friends, etc. The truth is everyone’s situation is different and insurance is not a one-size-fits-all sort of thing.

Factors That Affect Your Rates

Insurance companies review many things before issuing your policy. This is why you cannot always compare your rates to someone else’s. Some of these factors include:

  • Gender & Age
    • Young male drivers tend to be more of a risk than young women.
  • Marital Status
    • Married couples tend to have fewer accidents than single people.
  • Where you Live
    • Higher populated areas have more cars which can mean more accidents, theft, and collisions.
  • Credit Score
    • The lower the better.
  • Occupation
    • Some professions are at lower risk of having an accident. For example, delivery drivers or journalist tend to be on the road more than say a pilot. Also police officers, paramedics, and insurance writers tend to be more careful on the road.
  • Vehicles Driven
    • Safety rating, size, and the age of a vehicle are taken into consideration. The cost to repair an older car can often be more than the vehicles worth. Older vehicles are more likely to be “totaled”.
  • Miles Driven
    • The more you drive the more likely you are to be in an accident.
  • Driving History
    • Accidents, violations, and previous auto claims can be a huge factor.
  • Coverages
    • Higher coverages are going to mean a higher premium as well as better protection.

Over time some of these factors may change. If you maintain a clean driving record and good credit over a period of time, you may see a drastic change in your premium.

Comparing Policies

Television and radio ads can mislead drivers into thinking they can easily get cheap insurance. What they do not always mention is that you might be getting the bare minimum coverages.  If you feel you are paying too much for insurance it’s best to contact your agent and discuss your policy. Barrick Insurance can help you find the best rates for the right coverage (717) 632-7270.

Factors that Affect Auto Insurance Rates

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