What Determines Your Car Insurance Rates?

By Guest Blogger Murray Newlands


Credit reports are increasingly utilized by people across the country in determining their credit score. Times are tough and we’re all trying to save money in anyway that we can. But like death and taxes, car insurance is a must and often a costly must. But there are ways to save.

Driving safely is the obvious way to bring down insurance rates, but are you also paying attention to your credit report? Discover the lesser-known factors that can influence your car insurance rates, from marital status to the score on your credit report.

Credit Reports

Your credit report can be used by car insurance companies to use your credit history to drive up your insurance costs. Forty six allow car insurance companies to use your credit report to increase your rates. California, Massachusetts, Hawaii and Maryland are the states not allowing this method to be employed.

Driving History

Perhaps the most obvious, car insurance companies usually use your previous driving record to determine your new rate by using a point system. How long points remain on your driving record are determined by where you live and the actual infraction, but any tickets, accidents an parking violations always make your car insurances rates rise.

Age, Gender and Marital Status

Factors such as age, gender and marital status usually help determine your car insurance rates. New drivers are always viewed as higher risks when insuring and married women typically have the lowest rates, while unmarried men pay the highest car insurance rates.

Other Factors

Car insurance rates are also determined by the type of car you drive as well as annual mileage, anti-theft devices installed, your location and the deductible you’re willing to pay shall you need to file a claim. Although you may not have control of all factors that influence your car insurance rates, you can cut your cost by checking your credit history for accuracy. Don’t forget to check with your car insurance provider when it comes time to renew—improvements in your credit score or a decrease in how far you drive could mean you saving more money than ever before.

This is a guest post by Murray Newlands. Murray and his company Influence People do blog relations for CreditReport.com