How is Your Car Insurance Rate Calculated?

Posted: Thursday, March 31st, 2016

If you’ve been comparing car insurance rates with friends, you may have noticed some disparity in the numbers, even when you have identical driving histories. That’s because agencies use a variety of factors to calculate car insurance rates. Learn what goes into your rate then stop by Green Light Auto Credit when you’re ready to finance your next new or used car.

What Factors Do Car Insurance Agencies Consider?

Driving history is obviously a factor in deciding your rate, but there are a number of other points agencies consider as well, including:

  • Gender: As a rule, educated, married, professional women who own their own home pay the least for auto insurance, but female drivers in general enjoy lower rates.
  • Age: Young drivers have the highest premiums, especially young men, because they are seen as a greater risk. Next come seniors over the age of 65 because of increased risk of accidents.
  • Commute: The length and location of your commute can impact how much you pay, with drivers commuting long distances through busy urban areas paying more than rural drivers.
  • Credit History: Drivers with poor credit are seen as a higher risk and often pay significantly more.

Answers to Car Insurance Questions

How Can You Make Sure You Get a Low Rate?

There are a number of steps drivers can take to ensure a low rate from the outset and to lower their rate once they have a policy in effect:

  • Avoid Speeding
  • Don’t Drink and Drive
  • Bundle Policies
  • Review Your Coverage
  • Ask About Discounts

Talk to your agent about the policies they offer and see if there are any other discounts that you can take advantage of to lower your rates further.

If You’re Looking to Get a Car, Let Green Light Auto Credit Help

If you’re ready to get behind the wheel of a new or used car, come see the professional credit counselors at Green Light Auto Credit today. We can help you review your credit options, research vehicles, and find the lowest financing rates available regardless of your past credit history.

Green Light Auto Credit Can Lead You Through How Insurers Calculate Your Car Insurance Rate

Trust Green Light Auto Credit to show you how insurers calculate your car insurance rate to help you get competitive auto financing. Contact us today at (800) 200-5551.