Factors Affecting your Car Insurance Premium

Whether you are driving a rented car or your own personal car, getting car insurance is essential. It compensates your loss in case you are involved in an accident.

If you are looking for car insurance online, you will find that different companies offer different quotes. The quotes of some of the insurance companies can be expensive. This is due to some factors that can raise the cost of the insurance premium. The prices and related factors differ with policies and the companies offering them.

The factors that affect your premium rates are as follows:


Age is one factor that you can not control. However, the age of the driver has a significant affect on your car insurance premium rate. If you are an elderly, retired worker and are above 55 years of age, the cost of your insurance premium would be less. If you are a driver in your teens, or below the age of 25, your car insurance premium rate will be higher.


This is another uncontrollable factor that affects the insurance premium rates. Most insurance companies are of the opinion that women drive safely than men. Accordingly, if you are a male driver, you’re likely to pay more for your insurance.

Driving Record:

This factor is very much under the control of the driver. If you are a rash driver and you been booked for speeding, or if you have past accident records all these things lead to negative marking's which in turn raises the cost of insurance. In simple terms, you have to pay more to get insurance, if any of the offenses are present on your record.

Place of Residence:

If you are a resident of an urban area, the rate of your insurance premium is likely to go up. This is because, in a city, there is high risk of accident and theft. On the other hand, if you reside in a remote area, the probability of theft is considerably low. Consequently, your insurance premium would not cost you much.

Type of car:

The type of car also affects your premium rates. So if you drive an expensive car you would have to shell out more for your car insurance. The type of car you use is very much under your control.


If your occupation requires you to use your car for long distance traveling, or traveling in dangerous area, you are at a greater risk of getting involved in an accident. This would increase your insurance premium rates. On the other hand, if your occupation does not require you to travel much, your insurance premium rates would get cheaper.

There are other factors that are used by car insurance companies to calculate your insurance rate. However, the above mentioned factors are the most important that can have a significant effect on your car insurance premium rates.

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