When people shop for car insurance, they often feel it is tempting to reduce the rate by opting for a lower coverage amount by increasing the deductible. Of course, these are the two primary factors that directly impact the auto insurance cost. Along with that, there are several other things that affect car insurance, some factors that can control, and some that cannot.

Let us find out about the things that affect car insurance:

Location
The first thing that most car insurance companies ask you is your ZIP code or the area’s name where you live. It has a significant impact on the base rate. If you live in an urban area with a high population, accidents, congestion, and insurance claims will be common. Thus, for people who drive and live in metros, insurance rates will be higher than those who live in rural areas. It is because, in a rural area, experiencing an accident is somewhat less prevalent.

Further, the ZIP code will also give the insurance agent an idea of the number of stolen cars in your area, the amount of fraudulent and genuine claims, vandalism cases, and bad weather. These are all detrimental factors that help the insurance company understand how risky it is to give car insurance in your ZIP code.

However, not every state will give the location immense importance while calculating the insurance cost. For instance, in California, your driving record, miles you drive annually, and years of driving experience are far more critical than your location.

Age and sex
Younger men are more prone to accidents as opposed to younger women. However, older women are more prone to accidents as compared to older men. A few instances prove that the accidents caused by older women are less severe than those caused by older men. However, in this case, the difference in the cost of premiums might not be much.

Marital status
Usually, car insurance companies have reduced premium rates for married drivers compared to the single, divorced, separated, or widowed individuals.

Credit score
Approximately 92 percent of the insurers use your credit history as a detrimental factor in determining the premium rates for car insurance. So, an individual who has a low credit score will have to bear a higher premium amount. The argument here is directly associated with risk. Many reports suggest that individuals who have low credit scores are more likely to file higher and more claims. Though it is an important thing that affects car insurance, the rates, in this case, may vary. However, you can expect to pay anything between twenty to fifty percent higher than those with a good credit score.

Past insurance
This can determine the cost in two ways. First, if you have more than a few insurance premiums, they will likely give you a good consolidated discount. Secondly, if you have persistently had an auto insurance and decide to switch to a new company, the rate will be lower. But, if you have never had insurance and suddenly apply for it, the rate will be higher.