Top 5 Factors Determining Your Car Insurance Rate  
by Bill Mason

Auto insurance can be confusing and mind boggling
sometimes and it’s hard to determine exactly why
some individuals are receiving rates which are lower
than others. There are many factors which
contribute to the rate of auto insurance, some you
have control over and others you don’t.

Below you will find valuable information regarding
the factors which are compiled in order to determine
the rate of your car insurance. These will help you
understand important aspects of auto insurance and
why some individuals receive higher rates than

Here are the top five factors which auto insurance
companies will consider when determining your rate
of insurance:

1. Age – Your age will greatly affect the rate of your
car insurance. Teenagers and individuals who are
just beginning to drive will have higher rates for no
reason other than their age. There is nothing you
can do about this, as you get older and become a
more experienced driver your rates will go down.
Although they will go down, they will not stay
down. When you reach a certain age your car
insurance rates will go back up because you are an
elderly driver and your eyes and coordination may
not be as effective anymore.

2. Auto Insurance Companies – This is a factor which
you have control over. Some car insurance
companies offer lower rates than others for many
reasons. It is up to you to choose which one will
benefit you the most both now and in the long run.

3. Gender – Whether you are male or female will
also affect the rate of your car insurance. This is yet
another factor which you have no control over.
Females generally have lower car insurance rates
because according to insurance companies men are
seen as potential dangerous and careless drivers
who are more likely to be involved in car accidents.

4. Type of Vehicle – As much as we would all love to
be driving a shiny silver Porsche Boxter all around
town, the insurance rates for these types of vehicles
are unreal. If you want your auto insurance rates to
be low, I would suggest driving a car with a lower
price tag. The more money your car is worth, the
higher your car insurance rate will be.

5. Driving Violations – This is another factor which
you have control over. I know how tempting it is to
race your friends the moment you get your license
for the first time, but the amount of money you will
pay in the long run hardly seems worth it. Any form
of ticket you receive can potentially raise the rate of
your car insurance. If you want to pay less for car
insurance I would suggest abiding by the rules of
the road.

Although these are the most important factors in
determining your rate of car insurance, there are
many other factors which also play a part in how
much you will pay. Auto insurance is something we
all have to pay for, but by researching and
understanding the aspects of this form of insurance
you are learning how to reduce your rate to your
best ability.

Author Profile

Bill Mason is a retired insurance agent who now
writes as a freelance writer for
http://www. – a site that offers
information on home owners insurance, auto
insurance, low cost health insurance and more.
The Frugal