Rate Factors
First and foremost is your driving record. Insurance companies believe that someone who has been in a lot of accidents, has a lot of tickets, or filed previous claims is likely to file claims in the future. Therefore, these people pose a greater risk to the insurance company, and whenever you pose greater risk, you will pay a higher premium. Second facture is your age. People under 25 present much more risk to insurance companies , and therefore they pay higher car insurance rates. People over 65 are also thought of as a risk and they often pay rates comparable to young drivers. Some other factors are gender, marital status, and geography. Married women pose the least risk to insurance companies, and unmarried men present the most. This is most evident in young people with teenage boys paying higher rates than teenage girls. Also if you live in an area in which more claims are filed, your rates will be higher. Another major factor affecting your car insurance rates is your car itself. Is the car safe? How many claims have been made by people with the same or similar cars? What is the value of the car? How much damage does it cause to other cars in the case of an accident? These factors are all computed by insurance companies to determine insurance rates.