4 Numbers That Affect Your Car Insurance Rate

Have you heard that the color of your car can affect your insurance rate? While this is a myth, there are a number of factors that go into how much you'll pay for your premium. Here are four numbers that can have an impact on your rate:


The number of points you have on your driving records for moving violations will affect your insurance premium. The more points you have, the higher your rate will be. If you have a clean driving record, you'll pay less for your insurance. This is because insurance companies see you as a lower risk.

If you've been in an accident, your points and your insurance premium will go up. Insurance companies will also look at the severity of the accident and who was at fault.

Zip code

Where you live can also affect your insurance premium. If you live in a high-crime area, your rates will be higher than if you lived in a low-crime area. This is because there's a greater chance of your car being stolen or vandalized in a high-crime area.

Car insurance companies determine your rate by analyzing statistical data and, if the statistical data suggests that people living in your zip code have a higher rate of vandalism, theft, or even accidents, then your rate will be affected. Conversely, if people living in your zip code have a lower rate of those things, your rate could be lower.

Credit score

Your credit score is a factor in determining your insurance premium. While this may seem unrelated, insurance companies use your credit score to determine how likely you are to file a claim. If you have a good credit score, you're seen as less of a risk and will pay less for your insurance. This is because they assume you're more responsible overall.


The age of the driver is another factor that comes into play when calculating an insurance premium. Young, inexperienced drivers will pay more for their insurance than older, more experienced drivers. This is because they're seen as a higher risk on the road. It does drop, however, once you turn 25 because auto insurance companies assume you are more responsible at that age.

Additionally, your insurance rates will start creeping up again after the age of 65, eventually spiking at 80. This increase is due to a number of factors, such as declining vision, slow reflexes, and a general increase in traffic violations as people age.

While these are four numbers that affect your car insurance rate, there are other things that insurers look at when determining your premium. These include the type of car you drive, your driving history, and your coverage level. If you're looking to save money on your car insurance, it's a good idea to shop around and compare rates.

Contact your car insurance provider to learn more.