How Car Insurance Premiums are Decided

On Tuesday, April 25th, 2017

When looking for car insurance it is important to note the things that influence your premiums. Some of these are out of your control, but it is a nice idea to be aware of the ones you can control. Take these factors into account before approach a popular insurance broker such as One Sure Insurance, it will save you a lot of money.

Credit Score

This may be the largest factor that influences your insurance rate. Your credit score is a bigger impact than any discount you might be a candidate for. Most insurance companies will take your credit score into consideration when deciding what to charge you for your insurance. Getting your credit in order can be a good point to start when trying to decrease your insurance rate.


You may not have known that your occupation may influence your insurance prices. Insurance companies have found that some jobs have more careful drivers than others. Their study shows that paramedics, airline pilots, nuns, and insurance underwriters are inclined to be safer than the ordinary driver.


It may seem fully unfair, but your age is a point in deciding your insurance rates. Insurance companies have found that drivers at age lower 21, or with 5 years less driving experience, are more probable to be in accidents or get fines than those over 21 or with more experience in driving.  Your premiums should lower after you turn 21 if you didn’t get in accidents or tickets. But once you are older than 70, you may see your rates increase.

The place you live in

While you may be an awesome driver and do everything right, the neighborhood you happen to live in can influence your rate. Because the huge part of accidents occurs near home, insurance companies consider accident rates, break-ins, and car thefts for your region. It can also be more expensive to repair harms to a car in particular areas than in others.

Age of your Car
Though the repair costs of an older vehicle are close to the costs of a newer vehicle, an older car will more probably be “totaled” in an accident. It is because the cost of major repairs needed for an older car can often be more than the vehicle’s full worth. Thus, it is likely that the owner would simply dispose the vehicle and replace it, rather than opting for repairs.

As the cost to replace a new car is a lot higher than to replace an old car, newer cars are not thought to be totaled as often, and usually have much higher collision coverage rates than older vehicles. But, if your car is rather old, you could most likely drop the collision coverage altogether and just save the money to buy a replacement jalopy if you get in an accident.

Driving Activity

Some companies can decide your rate considering what you use your car for, the distance you drive, and where and when you drive. Business commuters generally drive more miles on their car, and the more you’re driving, the more likely you are to get in an accident.

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