Factors That Affect Car Insurance Rates

Owning and running a car is an expensive business, so the last thing you need is high insurance rates too, Luckily, most of us can make at least a couple of changes to lower the rate of our vehicle insurance premiums if we know the various factors that affect said rates. 

Obviously, there are factors like age and gender that you can’t do much about, but the following factors are things that you can potentially change to get a better deal…

Your credit score

In many places, a lot of insurance companies will want to look at your credit score before they can offer you a rate. If you have a lower score, you will potentially be hit with a bigger car insurance bill, which is not ideal. And although this isn’t necessarily something you can change immediately, if you are able to work on building your credit score, you could lower your premiums and improve your overall financial outlook in one fell swoop.

Your vehicle’s safety rating

It makes sense that your insurance company would take into account your car’s safety rating before setting your insurance premiums because the safer your vehicle is in general, the less likely you are to have an accident and need to make a claim in the future. Again, this may not be something you can do anything about right now, but you should definitely take it into account when you need to purchase a new vehicle – and even used cars can vary immensely in their safety ratings so don’t think it doesn’t apply to them because the insurance company will be checking no matter how new or old your next vehicle is.

Vehicle size

Larger vehicles are often chosen because they are perceived to be safer in an accident than smaller cars, so you might think that you are being sensible by choosing one. However, it has been shown that bigger vehicles with larger engines are more likely to be involved in accidents, which means that the insurance company may not look too favourably at them and that you may not, in fact, be as safe as you think.

Black boxes

In some countries, it is possible to have a black box fitted into the vehicle that will allow the insurance company to monitor your driving, mileage and when you travel, especially if you happen to be a younger driver who has just passed their test. If you agree to have one fitted, you may have to adhere to some restrictions to keep your premiums down, but it can cut insurance coast significantly, so if that doesn’t bother you, they may be worth considering.

The theft factor

If you have a desirable vehicle that is more likely to attract the attention of thieves, chances are you will need to pay higher premiums, so bear that in mind before you make your next vehicle purchase.

Keeping insurance premiums low can be tricky, but if you know the key factors that affect the cost, at least you have the option of doing something about them!

Emily Muelford
Emily is a British writer whose love of car culture is augmented by a fascination with both the European and American automotive markets. Her perspective is uniquely fish and chips.