What Factors Will Impact Your Auto Insurance Rate?

If you are thinking about switching auto insurance rates or you are getting auto insurance for the first time, you might wonder what kind of rates you should expect. You aren't alone. In fact, many people wonder what kind of rates to expect when they get car insurance. Here are a few components that could impact your rates.

First, Understand the Steps of Determining Your Rate

Your rate will be determined by several factors, but two steps are involved in deciding your specific rate. One step in the process is known as underwriting. During this stage, the company will assess your risk as an insured party. This helps determine if the company feels safe in insuring you in the first place. Then, you are rated. You may be assigned a group as part of this process, for instance. You will be given a rate similar to others in your assigned group based on your rating. It is important to keep in mind that each company uses its own rating system, but there are many similarities across the board.

Age and Sex

Did you know that your age and sex impact your auto insurance rates? This is because males tend to have more claims. People in certain age groups can also have higher rates based on the tendency for claims in these age groups.


Your vehicle also impacts your rates. It's not only the make, model, and year of the vehicle, but also what you use it for. Somebody who uses a vehicle for work will pay more than somebody who drives only to and from the grocery store or a workplace.

Driving Record

One of the first things that an auto insurance company will consider is your driving history. If you have a lot of accidents in your history, you are likely going to have a higher rate. This also applies to traffic tickets.


If you live in a bigger city, your rates may be higher than if you lived in a rural area. This is because there are simply more claims in certain areas compared to others.

Speak With an Auto Insurance Professional

An insurance agent can clear up some of your questions about auto insurance. A professional will also help you take a look at your insurance policy you have right now and help you determine what steps you should take to get a better rate in the future or when you switch to a new company.