Three Factors that Affect Vehicle Insurance

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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


, - February 6, 2018

Auto insurance can be one of the costlier aspects of car ownership. Insurance rates differ, with factors like vehicle type, model, and model year all affecting the overall cost. But there are three other things – independent of the vehicle itself – that influence the cost of insurance.

The Big Three

According to insurance.com, the average annual cost for car insurance was $1,318 in 2017. These three factors affect how much a particular driver ends up paying for auto insurance:

Safety – A higher safety rating on a vehicle, or better safety equipment in it, can lower insurance costs. An owner’s driving record also comes into play – not every infraction will raise monthly premiums, but it’s best to avoid getting a ticket at all costs. How long a ticket stays on a driver’s record depends on their state of residence.

Location – Knowing what a buyer’s state insurance rates are will also help them get a better idea of what they could be spending on insurance because each state is different. The location factor is also determined by a buyer’s zip code. Insurance rates are based on the number of claims and the frequency of theft, accidents, or vandalism that occur in a specific area.

Stability – A buyer’s occupation and marital status can affect their auto insurance. The Consumer Federation of America has conducted research that supports that married drivers aren’t in as many accidents as single drivers. As for occupation, the longer a buyer stays with a particular job, and the type of job, can affect insurance rates.

Bottom Line

No two insurance rates are the same. A high insurance premium may force drivers to spend more time and planning when it comes to considering the cost of vehicle ownership. Bad credit car buyers will have an especially difficult time with financing, but there’s hope.

If you’ve found yourself in a challenging credit situation and need a vehicle, let CarsDirect help. We work with a nationwide network of dealers that have the lending resources available to help people in many credit situations. Take the first step by filling out our free of cost, no-obligation auto loan request form today.

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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


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