Car Insurance: What Affects the Cost?

Car insurance is one of the only forms of insurance that is mandatory, so if you’re found driving without it you will be fined. Insurance can be a frustrating payment to make each month, but you’ll be so glad you did if you’re ever involved in an accident. When it comes to applying for car insurance, the provider will ask a number of questions to gauge the risk involved and therefore decide how much to charge you. Here, we take a look at some of the factors that can affect your car insurance quote.


First of all, car insurance providers like this chicago car insurance company base their terms on statistics. So, for example, the number of male drivers involved in accidents is higher than the number of females, so males are often charged more for their car insurance under the assumption that they are more likely to crash their vehicle. Age also comes into it, as younger drivers are less experienced and often more reckless and are therefore more likely to make a claim than older, more sensible drivers. Strangely enough, elderly males are deemed less of a risk than elderly females though.

Your marital status is considered too, as statistics show that people who are settled in long term relationships are less likely to have a car accident than those who are single. This seems outdated but providers are still allowed to take this into account. And finally, something that makes more sense is the fact the price you are quoted for your car insurance is affected by your credit score. Those with a bad credit score are seen as more of a risk and are therefore charged more as a form of collateral.


How you use your car is another important factor that providers consider when deciding how much to charge you. Where you live tells them the kinds of roads and other drivers you’re going to come into contact with, and therefore what the chances of you crashing your car could be. Your address and where you park your car will tell them how safe it is going to be whilst parked too.

When applying for car insurance you will be asked how many miles you will be driving on average per year, as the higher the mileage, the more chance there is that you might be involved in an accident. You will also be asked about the make and model of your car, as the more expensive the car is, the more the provider would need to pay for repairs if you were involved in an accident.

Your personal circumstances are considered when applying for car insurance, for example your age, gender, and marital status as well as your credit score. Providers also consider how and where you will be using your vehicle; where you park, the number of miles you do, and the kind of roads you’ll be driving on. The make and model of your car have a big impact on the price you are quoted too.

Despite the considerable fluctuations in price, don’t be tempted to lie on your application as when it comes to making a claim, your policy would be void and they would not be able to help you. For tips on choosing and buying cars, visit and take a look at their handy articles such as The Dos and Don’ts of Buying a Sports Car.

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