Top Factors that Affect Car Insurance Rates

    Posted on: July 28, 2015 by Signature Insurance Group

    When it comes to calculating auto insurance coverage and rates, there is a general idea that in order to save money you must lower the amount of coverage you have. While it is true that less coverage will give you a lower premium, there are other factors that insurance companies take into account when calculating rates. Before you start slicing coverage with your Orange County Insurance, you should consider some of the other factors that are affecting your rates.

    Types of Coverage

    The first thing you’ll want to address is the amount you want to spend and they type of coverage you want. It is recommended that you carry a 100/300/50 for liability coverage to insure that in the case of an accident, any injuries or damage is taken care of. You should also consider collision and comprehensive insurance should anything else happen to your vehicle such as theft or natural events, like a tree falling, cause damage.


    Studies have shown that young drivers or drivers in their twilight years have a tendency to be in more accidents, thus driving insurance premium for new and elderly drivers up. Similar studies have shown that people that are married with families tend to be involved in fewer incidents on the road and so tend to be given lower rates. Where you lie can also be a factor. If you live in a high crime area, there is higher risk of vandalism or theft causing the insurance company to have to pay out the comprehensive claim.

    The Vehicle and Vehicle Use

    The vehicle you drive does have an impact on your insurance rates. Vehicles with higher safety ratings mean lower risk of injury in the case of an accident and therefore lower insurance premiums. While a new car generally has higher safety ratings, they also cost more than an older vehicle to replace should your vehicle be totaled in an accident, which is also taken into account. Insurance companies will also factor in how much you drive the vehicle. Someone who is on the road commuting a hundred miles every day has a greater opportunity of being involved in a collision than a driver that only goes a few miles a day, thus increasing insurance premiums.

    Driving History

    One of the biggest factors in calculating insurance rates is your history of accidents and tickets. If you have a clean record with no blemishes, your rates are likely to be lower than someone with numerous claims on their record. The more claims on your record, the more likely you are to be pegged as a ‘risky driver’ and should you have too many, an insurance company may choose not to insure you at all.

    At Signature Insurance Group we know that choosing the right auto insurance is important for your safety and the safety of your loved ones. Call us today for more information on how we can help get you back on the road. 855.972.9437

    Posted in: Insurance Southern California