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How Are Car Insurance Rates Determined?

Many car owners have a common question, “How are car insurance rates determined?” For most drivers, the details behind how car insurance rates are calculated is a mystery. While it can be quite detailed, there are some important factors that affect your rates.


Age – Age is one of the biggest factors when it comes to determining your rate. Most people know that their car insurance will go down at age 25 (it’s the only exciting part about turning that age). The question is though, do you know why? Well, the younger you are, the less experience you have behind the wheel. Things do become more second nature the older you are, up to a certain point. Insurance companies have determined that 25 is the age where you have a good grasp of all that driving will throw your way.

Gender – What does gender have to do with driving? Studies have proven that male drivers are more likely to have an auto accident than their female counterparts. Statistics are an insurance company’s lifeline. Whether it’s a man’s machismo that causes this to be true, we aren’t sure. Facts are facts, though.

Driving Record – This is the big one. It’s pretty easy to see that someone who has never been in an accident or had a ticket is less of a risk than someone who has. The more incidents on your file, the less trust your insurance company will have in you not to have another accident or ticket. Traffic accidents, moving violations and driving under the influence all will affect your insurance rates greatly (some more than others). Drive safe and obey traffic laws and your rates will benefit.

Marital Status – Studies (yes, those again) have found that married individuals are less likely to have an auto accident. Precious cargo on board.

Hopefully now you won’t have to ask the question, “How are car insurance rates determined?”, ever again. The specialists at O’Quinn Insurance Services are here to help you find the lowest rates possible as well as serve all of your insurance needs.

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