5 Factors That Affect Our Car Insurance

Buying a car is a great investment. Like any large purchase, you want to make sure it's looked after and has the proper protection. Choosing to buy insurance shouldn't be taken lightly. It may not seem like it, but many things go into determining what you'll pay for car insurance.

Where You Live

Something as simple as your address can drastically change your premiums. Areas that have a lot of car accidents and theft will mean you pay more. This is because your car is at a higher risk for damages.

Where you live affects car insurance rate

Even if you live in a safer area, where you park your car can still play a key factor. Leaving your car in the street overnight will raise your monthly payments. It's always recommended that you use a lock-up garage to maximize security and get lower rates.

Driving History

Insurance uses risk factors, among other things, to see if you're likely to claim. Your driving history is a very good indicator of what kind of driver you are. A person with no accidents will pay less than a person who has been in multiple accidents

If your history shows that you drive a lot, it will increase your chances of something happening to you and mean you pay more. In the case of being a new driver, having no driving history might cause higher insurance rates. These people don't have enough experience on the road to be considered safe drivers.

The Insurance Company

A simple way to get a great price is to shop around. You'd be surprised how different companies charge even if you give them the same information. Even if you're already with a company, it never hurts to see if you can get a better price for the same coverage.

Shop insurance companies for the best rates

Many people may think about looking at many insurance options and see a time-consuming task in front of them. Luckily there are great ways to compare car insurance companies with just a few clicks. Using brokers will help you see all the information in one place for easy comparison. 

Type of Coverage

Insurance coverage often comes in many forms. As a customer, you can choose what you want. The ability to customize gives you the freedom to get what you can afford. Excluding things like medical or liability protection is a bad idea, so always try to include them in your plan.

Coverage plans are also divided into different levels. Higher ones cost more because you get more features in your plan. Your company predetermines these levels, so you have less choice in what you'll pay.

Type of Car

What car you drive is another key factor in your policy. Even if you and another person have the same factors, the type of car you drive will cause both of you to pay different rates. There are several reasons for the difference in prices.

The type of car you drive is a key factor in insurance rates

If a car costs a lot to replace or repair, then the insurance will make you pay a higher rate. The size and model can also determine the pricing. The company you're with can usually tell you why your car costs a certain amount to cover.


Insurance can be a very confusing concept. The numbers and terms are thrown at you with little explanation. By taking the time to understand small things about getting covered, you can get the best plan at a great price.