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Age & Gender Aside, What Factors Affect Auto Insurance Rates?

28 Jul by 5280 Insurance

Age and gender are among the factors that insurance companies use to determine rates. However, other factors such as driving history and vehicle type are also important.

What Is Auto Insurance?

Car insurance is a policy purchased for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. Auto insurance may additionally offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects.

What Are the Benefits of Auto Insurance?

Auto insurance provides three primary benefits to individuals and families who drive privately-owned vehicles:

  • Financial protection in the event of a traffic collision or other covered event.
  • The potential to save money on auto insurance premiums.
  • The ability to purchase additional coverage beyond the state-mandated minimums.

Factors Affecting Insurance Rates

Many factors affect your auto insurance rates ( Age, Not Using Seatbelts, Inexperience, Night & Weekend Driving, Alcohol Use). These are:

1. Age

Auto insurance companies consider younger drivers to be a higher risk, and they charge higher rates accordingly. If you’re a young driver, you can expect to pay more for your car insurance than an older driver with a clean driving record.

2. Gender

Insurance companies also consider gender when setting rates, and according to a study from the University of Michigan, male drivers have traditionally paid more on insurance than females. According to the study, women have lower crash rates than men, and some insurers charge women with little or no previous driving experience less than men with a similar record. The insurance companies also offer lower rates to drivers who take a defensive driving course.

3. Not Using Seatbelts

Not wearing a seatbelt is one of the most common causes of serious injury or death in a car accident. If you’re involved in a car accident and do not wear a seatbelt, you can be fined, and your insurance rates will go up.

4. Inexperience

If you’re a new driver, you’re considered to be more of a risk than an experienced driver. Insurance companies charge higher rates for new drivers because they’re more likely to be involved in an accident.

5. Night & Weekend Driving

Driving at night or on the weekends is more dangerous than driving during the week. If you’re involved in an accident during these times, you can expect your insurance rates to go up.

6. Alcohol Use

Drunk driving is one of the most common causes of car accidents. If you’re convicted of DUI, you can expect your insurance rates to increase.

Tips on Lowering Auto Insurance Premiums

The best way to lower your auto insurance premiums is to be a safe driver. Maintaining a clean driving record is the best way to do this. If you have accidents or traffic violations on your record, your rates will increase.

You can also lower your rates by increasing your deductible. A higher deductible means you’ll have to pay more out of pocket if you have an accident, but it will also lower your monthly premium.

Another way to lower your rates is to take advantage of any discounts the company offers. Many insurance companies offer discounts for things like having a safe driving record, taking a defensive driving course, or insuring multiple vehicles with the same company.

You can also lower your rates by choosing a less-expensive car to insure. Sports cars and luxury vehicles are more expensive to insure than sedans and minivans.

If you have a good credit score, you may be able to get a discount on your auto insurance premium. Insurance companies often use credit scores to determine rates, so a good score can save you money.

Finally, you can lower your rates by shopping around. Auto insurance rates can vary significantly from company to company, so it pays to get quotes from several companies before buying a policy.


In conclusion, auto insurance rates are based on various factors, including age, gender, driving history, credit score, etc. However, age and gender are two of the most important factors that insurers consider when setting rates.

Generally speaking, younger drivers and male drivers tend to pay more for auto insurance than older drivers and female drivers. This is because they are considered to be higher-risk drivers. However, there are many other factors that come into play when insurers set rates, so it’s important to shop around and compare rates from different companies.

At 5280 Insurance we’re committed to a local experience. That’s why when you call us, you’ll speak immediately with a real person. We don’t have automated systems. We don’t have long wait times. We don’t transfer you to multiple departments. Calling us is like calling a friend. We’re here for you, and we aren’t going anywhere. Get an auto insurance quote in Lakewood from us today!

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