Factoring Car Insurance Rates into Your Budget

Last Updated on March 22, 2018 by Jason Mason

If you are planning to acquire a new or used car, you must factor car insurance rates in your budget because each state requires car buyers to purchase minimum car insurance before driving their cars on public roads. If you have been shopping for the cheapest car insurance cover, you would have probably known that there are many factors that will determine your insurance rates. Continue reading this article get more insights about some of the factors that determine your car insurance rates.

Factors that you have to live with


If you are younger than 25 years, most insurance providers will charge you higher insurance rates because you are likely to cause or get involved in an accident. Various studies show that people aged between 40 and 70 years are less likely to cause an accident compared to their younger counterparts.


If you are a man, you will be charged higher insurance rates. Statistics show that women drivers drive safely compared to their male counterparts. Studies also show that the cowardice nature of women makes them make informed decisions when driving their cars, thus causing fewer accidents.

Marital Status

Marital status also goes into determining the rate of insurance that an individual gets. Married individuals always get lower interest rates when they apply for insurance than single individuals.

Changeable Factors

Place of residence

If you live in congested urban areas with a lot of traffic, you are likely to pay higher insurance premiums than a person who live in a rural area. Also, if you live in areas with higher crime rates you are likely to pay higher insurance rates.

Driving Record

If you receive several citations and moving violations on your driver’s record, you will be termed as a ‘unsafe’ driver and will be forced to pay higher insurance premiums. You must, therefore, ensure that your driver’s record is always clean.

Type of Vehicle

If you have a less expensive car, you will pay lower insurance rates. If you own a car model that is prone to accidents, you will likely pay higher insurance premiums. If you own a car that is fitted with safety features, you are likely to pay lower insurance premiums. So the type of car that you own goes towards determining your car insurance premiums.

Accident Claims

If you have not caused any accident, or you were involved in an accident in which you were not at fault, you are likely to pay lower rates when you apply for insurance cover.