What factors increase and decrease your car insurance rates.
Many things go into a car insurance rate. Your driving record is certainly one of the factors used, but others can raise or lower premiums. Here’s a breakdown.
What Factors Increase Car Insurance Rates
- Driving History. If you’ve been in accidents, had speeding tickets, or had any other traffic-related incidents, this could boost your rate.
- Age. Younger drivers and older drivers pay more for insurance. If you’re younger than 25 or older than 70, you’ll likely pay more.
- Location. If you live in an area with lots of accidents, you’ll pay more. Areas with high rates of accidents, theft, or vandalism can result in higher premiums.
- Type of Vehicle. Sports cars, motorcycles, and other types of vehicles can have higher premiums.
- Credit Score. Yes, a low credit score can result in you being deemed a risk, thus, your rates may be higher.
What Factors May Decrease Car Insurance
- Driving History. If you have a clean driving record, you’ll likely get a lower rate.
- Age. When you hit that sweet spot of between 25 and 70, you will likely see your rates go down
- Comparing Quotes. You can shop around for car insurance so that you get the best rate available.
- Safe Cars. Cars that have a good safety record may get you a lower car insurance rate.
Do One Thing: Shop around for car insurance so that you’re getting the best deal available.
The material provided on this page is for informational use only and is not intended for financial, tax or investment advice. VisionBank, PurposeBank and/or its affiliates assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.
