5 Determinants of Care Insurance Rates

We all remember when we bought our first vehicle. It was an experience that was anticipated and exciting. Being able to drive our own vehicle was a big deal. For many though, we forget the costs that are associated with owning a vehicle. Extras costs on top of purchasing your vehicle include registration, gas, and car insurance. All of these costs add up, making your vehicle more expensive than initially expected. Car insurance costs can vary depending on quite a few different factors. One is your driving history, so if you have been in a car accident before. There are some components of your care insurance rate that is out of your control and that are controlled by you. 

State Requirement

Depending on where you live, there are requirements within each state on the extent of car coverage. Each state has different minimum and maximum limits for different types of coverage. You can easily look up your states online to know what amount of coverage is required for you. Insurance agencies will also be able to tell you what kind of coverage you must have to comply with your state requirements. 


It is not a surprise that age is a determining factor. The younger you are is more likely you are going to get into a car accident. Specifically from the age that you get your license to the age of twenty-five. At the age of twenty-five, your insurance rates should start to decrease. While you are younger, you are more reckless and distracted while driving. Once you hit the age of 65, your rate may start to increase. Older individuals are more likely to get in a car accident than younger drivers. 

Your Vehicle

What type of make and model you have can help to determine your insurance rate. Vehicles that have better safety ratings will give you a little lower rate. If you have a vehicle that is not very safe or is likely to be stolen, your rate may be a more. This includes the year that your vehicle what made. Older vehicles may not be as safe but also are lower in cost to replace if it is totaled. 

Yearly Mileage

One consideration that may seem odd is the number of miles that you drive each year. This is because the more miles you drive means you are on the road. If you are on the road more, your chances of getting into an accident also increase. If you have a long daily commute, you are likely paying more. If you mostly drive for leisure, you may pay less. 

Driving Record

This is an obvious contributor, but your driving history is taken into account as well. If you have a clean driving record, you will pay less. If you are filing claims consistently, whether they are your fault or not, you will pay more. Another factor is how long you have been driving. A driver at the age of 27 who has been driving since 16 is going to pay less than a driver that age with 2 years of driving experience. 

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