How Certain Factors Influences Your Vehicle Insurance Claims

Probably, there is much that you don’t know about insurance premiums. If you step out to go shopping for a favourable insurance premium, it’s essential that you learn everything an insurance premium entails. There are two factors that affect the cost of your premium. They include raising your deductibles or lowering the amounts of coverage.

It’s challenging to realize that even the overall rate of your car insurance premium is somehow affected by other different factors. However, some of these factors can be controlled while others can’t. Getting to know what affects your rate can assist you to make a steady decision when you plan to acquire an insurance premium. Additionally, you will be aware of exactly what step to take to cut the cost of all the expenses.

Demographic factors.

Such factors include your age, gender, marital status, credit score and your geographical location. All these factors affect your insurance premium in different ways. Let’s take a look at some of these factors in a summary.

Marital status.

Couples are said to be involved in fewer accidents compared to single people. This means that getting married especially for men can lower the insurance premium rates. The rate at which your premium will decrease will also depend on your previous driving history. If it was pathetic, definitely you will have to dig deep. If you are a man whose driving record is clean and has never been involved in an accident, then your premium rates can be cut by half.

Credit score.

Most insurance companies consider your credit score and give it a thought before they finally determine your rate. If you are wondering, there is no specific point where your credit score will start to affect your rate. However, lower scores will translate to higher insurance premiums.

Gender and Age.

Statistically, younger men incur higher rates compared to young women. There is an increase in the number of teenage men that get involved in accidents compared to young girls. Generally, older men have a better reputation for careful driving compared to older women.

However, some evidence compiled suggests that older women are involved in less minor accidents compared to older men. Despite the statistic, the difference in premium is not that drastic.

The place you live in.

Many traffic accidents transpire close to people’s homes. Therefore, the area of your residence will significantly affect your insurance premium. An area that is dense with cars and the population is massive translates to a higher risk of accidents, injuries, theft and collisions.

In some areas, repairing your vehicle is costly compared to other areas. Additionally, some areas are faced with high rates of theft and burglary. Also, in most urban cities, there is an increased number of unemployed persons. This means that there is a high number of uninsured drivers. Most of these drivers can’t afford to ensure their vehicles.


Auto insurance organizations may make correlations between a person’s profession and the risk of an accident. This way they will adjust your premium consequently if they see there are chances of you getting involved in an accident.

A good example is delivery drivers and journalists. These professionals are always on the road travelling to different places. This means that their risk of getting involved in an accident is high. Compared to pilots who only drive between the airport and their home, so they don’t spend much time on the road.

Paramedics, police officers and nuns are always given thumbs up as they are considered responsible and more careful while on the road. Insurance companies view them to be more cautious compared to average drivers.

Factors that are car –related.

The car model that you drive affects your premium rates. Some cars are likely to be stolen. They are costly to repair and even lack safety features that work to prevent the occupant from accidents.

Safety rating.

A vehicle that possesses a high degree of safety features means that there are reduced reasons for having to pay for a passenger’s medical bills. Owning such a vehicle will cost you less when it comes to insurance rates. Possessing a car with less safety rating will mean that you will have to pay more for your insurance.

The size of the vehicle.

Large vehicles are assumed to be safer compared to smaller vehicles. Large vehicles rarely get involved in accidents. This means that larger vehicles with adorable safety ratings are required to pay less when it comes to insurance premiums.

On the other hand, smaller cars, i.e. sports cars are required to pay extra costs compared to larger vehicles. Such car owners are involved in high speeds which mostly result in fatal accidents. It’s for this reason that most insurance companies take caution.

The age of the car.

Car repairs are similar. The cost of repairing an old car is almost the same as that of a new one. However, in the event that an older car is involved in an accident, the expense of carrying out the repairs might be higher than the vehicles worth. In such an event, the owner will likely discard the vehicle and request to be compensated with a new one instead of repairing.

The cost of replacing a new car is elevated. It’s more costly compared to replacing an old car. A newer car has a higher coverage premium. What you should know is that paying an insurance premium is a burden that you have to bear for owning a car. Therefore, it’s up to you to do all it takes to have a lower rate that will be beneficial to you.