Comparing the same insurance plan you and your friend have you will see that your car insurance rates are completely different. This is due to the fact that many factors affect each car insurance rates making them be three or four times higher than of another person’s rates.

These factors are reflected by personal features, both of the car and of the owner’s, but they al have one thing that is similar: they are seen as indicators of risk. Insurance companies consider that these factors indicate how an accident is likely to happen and what costs would this involve.

Major Factors

• drivers who are under 25 present a greater risk to have an accident compared to the more experienced ones aged between 50 and 65, who are at a lower risk.
• gender – if we consider the statistics they will prove that women are very careful drivers as they do not cause as many accidents as men, but the difference between the sexes is not that emphasized as it was in earlier times.
• vehicles features – model, make, year, engine they all affect the rates. The newer and the faster are seen as greater risk attracting as such higher rates.
• marital status – a person who is married will be more responsible behind the wheel than a single one.
• traffic violations – having a lot of tickets specified in your driving record will attract higher rates.
• accident claims – a history of accidents with items that were damaged na d as such claimed can increase your premiums.
• geography- living in the city the risks of getting into an accident is higher than those involved by a living in the countryside.
• credit rating – as irrelevant this might seem to you the poor credit that you have however increases the probability that you would make a claim, a more costly one than the ones who have good credit.

Ways to lower your car insurance rates

• drive a vehicle that is not that powerful and presents safety on the road. A small 4-cilinder auto will attract lower rates than a large SUV.
• do what it takes to improve your credit – spend your money more responsible to be able to pay your bills on time will only bring lower premiums and a good credit rating.
• there is the good student discount – if you count yourself among the good grades students it has been seen that they have also better driving records. Being a good student will definitely attract lower costs on your car insurance coverage.
• drive safely and responsibly – fewer risks when being behind the wheel will get you less traffic tickets, but it is preferred to have none on your driving record; this will make your insurance company to trust you are not a risk for the traffic and for others life.