fbpx Factors that May Affect Auto Insurance Rates - Car Insurance Chicago and Chicagoland Area, Coverage Requirements, Free Quote

Factors that May Affect Auto Insurance Rates

man signing car insurance documentIf you’re planning to buy a car, one of the costs the you need to consider is auto insurance. An auto insurance ensures that you are protected from financial loss in case you are involved in a vehicular accident. It provides coverage for property damage or theft, liability insurance for bodily injury, and coverage for medical treatment and rehabilitation.

In choosing what auto insurance to purchase, you may be tempted to reduce your expenses by looking for an auto insurance with the lower amount of coverage or by raising your deductibles. While these two factors obviously affect car insurance costs, there are other considerations, some of which are not under your control, that can impact the price of auto insurance premiums.

Knowing what these auto insurance rating factors are will help you make a more informed buying decision:


Where you live is one of the factors that greatly affects auto insurance rates. Insurers will typically ask for your zip code to determine if your area is highly populated and if there are insurance risks present, such as damaging weather, acts of vandalism, and prevalence of insurance claims.

Age, Gender, and Marital Status

Your age, gender, and marital status are some of the lesser-known factors that are used in determining the cost of auto insurance premium.

Statistically, teen drivers and seniors are more likely to figure in an accident. As such, most insurance companies consider them more risky and expensive to insure compared to other drivers. Younger drivers tend to commit mistakes, such as tunnel vision, distracted driving, or speeding, which may lead to road accidents or put other drivers’ and pedestrians’ safety at risk. On the other hand, seniors age 70 years or older who have poorer eyesight and slower reflexes that impact their driving ability may be charged with higher insurance costs.

Some evidence suggest that women are safer drivers than men, hence, pay less car insurance. However, insurance costs levels off as women drivers get older. Studies reveal that between ages 30 and 50, men pay slightly less auto insurance than women do. Married car owners also are charged with less insurance premiums, they tend to be more careful now that they are driving for their families.

Driving Experience and Record

If you have years of driving experience, coupled with a clean driving record, you are likely to receive a good rate. You will be considered less of a risk compared to drivers with past records of traffic violations.

Claims Record

In addition to your driving behavior, insurers will look into past insurance claims. The number of claims you have made, whether with them or with another insurance company, will either keep you from surcharge or hike up your rates.

Credit Score

Insurance companies will also look into your credit score. Generally, the lower the credit score, the higher the insurance premium will be.

Car Safety Rating

The type of car that you have affects insurance costs. If your car has a high safety rating and if it has safety features such as air bags, automatic seatbelts, and traction control, means that your car is safer to drive and may result in lower premium costs.

The Best Car Insurance in Aurora, Il

At Oxford Auto Insurance, we provide affordable insurance rates and flexible payment plans so you can get the financial protection you need while you’re on the road. Our team will help you find the comprehensive coverage for your needs.

For more information on our products and services, contact us today.