How are car insurance rates calculated?

From your gender to your location various factors influence how much you pay for car insurance. 
Here is a look at the details that determined your rate along with what you can do to decrease your yearly costs.


Women and older drivers have statistics to thank for their lower insurance rates. On the whole, men are involved in more severe accidents and incur more in DUI charges than female drivers, making them more expensive to insure. Drivers under the age of 25 can also expect to pay higher premiums simply based on data.


The better your driving record is the better your rates tend to be, while traffic violations and accidents can quickly hike up the price you pay per month. Residents in most states can also save money on their car insurance if they have better than average credit, as many insurers use credit based insurance score to determine rates.


The age and size of your vehicle also trigger different price points. for instance, newer luxury vehicles may incur a higher rate because these tend to be stolen more often. Larger cars are generally considered safer and could bring the price down, but cars with relatively large engines like sports cars could push premiums higher.


The population density of your city can markedly impact your car insurance premium. People in rural areas usually see lower rates while drivers in busy urban areas see higher ones due to the increased chance of having a collision or experience a break-in 
When it comes to your auto insurance, some factors that influence costs are well within your control. Others, unfortunately are not .Either way it doesn’t hurt to look into available discounts or bundle options that could lower your monthly rate.

Facebook Comments

Posted in

Peter Wilson

Owner / Agent

Barbra Gouaille

Owner / Agent

  • 702-867-0049
  • 702-660-9067
  • bgouaille@thewilsongrp.net
  • pwilson@thewilsongrp.net


Scroll to Top