5 Things You Didn’t Know Affected Your Car Insurance

When it comes to car insurance, surprising factors can influence your personal rate. Keep reading to learn five key things you didn’t know affected your car insurance, from your zip code to your age and more.

Your Zip Code Matters

Where you live doesn’t just affect your real estate prices—it plays a big role in your car insurance rates too. Insurers use your zip code to determine risks such as the likelihood of accidents, thefts, and even weather-related damage.

If you live in an area with heavy traffic or a high rate of car theft, you’ll likely see higher premiums. While you may not be able to pick up and move for cheaper insurance, parking your car in a garage or choosing a secure location can reduce your rate.

The Car You Drive

Not all vehicles are equal in the eyes of insurance companies. The make, model, and age of your car can influence your premiums significantly.

Cars with high safety ratings and advanced safety features are usually cheaper to insure because they’re less likely to result in a costly claim. You can also improve the level of safety in your car in different ways to make your insurance provider look on it more favorably.

Your Age

Though you can’t control when you were born, your age directly impacts your premiums. Your age affects your car insurance costs as it determines your driving experience. For new drivers, rates are typically higher because insurers see them as riskier.

But as drivers mature, and if they maintain a clean driving record, their rates will gradually lower. However, older drivers, particularly those over 65, may see rates increase again due to factors like diminished reaction times.

Your Credit Score

Your credit score might seem completely unrelated to driving, but it’s a key metric for many insurers to gauge risk. The idea is that individuals with higher credit scores are generally more responsible, leading to fewer filed claims.

Poor credit, on the other hand, could result in significantly higher premiums. Keeping an eye on your credit score and working to improve it—not just for car insurance but for overall financial health—can make a real difference in your rates.

Marital Status

Another thing you probably didn’t know affected your car insurance is your marital status. On average, married drivers tend to pay less for coverage compared to single individuals. The rationale is that married people are statistically less likely to engage in risky driving behaviors.

While this can feel unfair—your driving habits, not your social status, should determine your rates—it’s a real factor baked into many insurance policies. If you’re recently married, ensure your insurer knows; it could lead to noticeable savings.

Save More by Staying Aware

Understanding the factors behind car insurance premiums can help you make smarter financial decisions. If you think you’re paying too much for car insurance, there may be steps you can take to lower your premiums, from adding safety features to even improving your credit score. By staying informed and exploring options, you can reduce uncertainty and potentially lower your next insurance bill.