Car Insurance Rates

What Factors Affect Your Car Insurance Rates?

Car Insurance rates, or premiums, can be very confusing sometimes…why do some people have a higher rate than you, while others have a lower rate than you…how are rates decided? What factors impact the cost?


Your premiums begin at a base rate, at this point, everyone is on equal ground. Then insurance companies start factoring in the different risk-rating factors of the individual driver, which is where the differences begin to appear. Some factors are specific to the driver, while others are more universal. Insurance companies need to do this to determine the probability that you will need to submit a claim.

The factors that affect your rates are:

Keep in mind that as your life changes, and your risk factors change, your policy could increase or decrease.

  • InsuranceRisk-WhitcombInsuranceAgencyYour driving record – Your record includes such things as “your fault” accidents and moving traffic violations. Your driving history is one of the biggest determining factors for your insurance rates because with a lot of strikes against you, you are considered a high risk driver.
    • Keep your record clean for a few years, and your rates could go down.
  • Your age – While young drivers have a tendency to be immature drivers who are easily distracted and more prone to “having fun” behind the wheel, older drivers (about 70) often have slower reflexes which is also problematic.
    • Good news for younger drivers, is that typically around the age of 25 you are considered more mature and rates will go down.
  • Your gender – Younger male drivers are most often more aggressive drivers than young female drivers, which may cause their rates to be higher. By the time young men are about 30, driving records for both male and female are more equal and so are their insurance rates.
  • Your marital status – Statistically, married couples have safer driving records, with fewer accidents and claims, so their rates can be lower.
  • AccidentClaims-WhitcombInsuranceAgencyYour claims history – You are considered high risk if you have made several claims in a short period of time. The good news, like your driving history, keep your record clean for a few years and your rates are more likely to go down.
  • Your credit history – In the majority of states, insurance companies are allowed to use your credit history to help determine your insurance rates. Typically, credit scores under 600 are considered more risky, and you could experience higher insurance premiums.
  • Your car – The history of the make and model of your car’s performance plays a part in determining your rates. Things like past claims, repair costs, and theft rate are all considered.
  • Badweatherdamage-WhitcombInsruanceAgencyYour location – Where you live is also considered when your rates are being determined, such things as:
    • bad weather claims
    • car theft occurrences
    • living in metropolitan areas (they tend to have more accidents, thefts and vandalism)
    • car repair costs
  • Your amount of driving – People who drive less have less risk of being in an accident and typically pay less.
  • Your deductibles – If you are able to have a higher deductible for your insurance policy you will be able to reduce your rates.

At Whitcomb Insurance, it is our pleasure to sit down with our clients, and we would be happy to sit down with you, answer any questions you might have, whether it’s about auto, homeowners, small business or life insurance. You can count on us to be totally honest and upfront with you!
Along with great insurance options, we also offer Financial Services. You can count on us to be totally honest and upfront with you!

Contact us or give us a call at 425-391-8731


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