Car Driver

It’s a common question that stems from the fact that many auto insurance providers don’t openly talk about the factors that influence the rate you’re charged on your auto insurance. The reality is that there’s much more that goes into how rates are determined than simply whether you’ve been in any at–fault accidents. Here are a few of the other factors.

The Type and Age of Vehicle You Drive

The type of vehicle you drive has a large influence on the insurance premiums you pay. If you drive a high–powered sports car, for example, you are statistically more likely to engage in riskier driving behaviors that cause more damage in accidents, and you’ll pay a higher insurance rate as a result. The same is true if you drive a large truck or SUV. Because of their weight, these types of vehicles can cause more damage in accidents.

Additionally, newer cars offer more safety features and theft deterrents that can reduce your insurance premiums.

Driver Age

Statistically speaking, young drivers are involved in more accidents than older drivers. As a result, younger drivers typically pay a higher premium than older drivers. Generally, you’ll be considered a young driver if you are under the age of 25, though on some policies the minimum age can be higher.

Where You Live

Some cities have a statistically higher incidence of accidents than others. If you live in one of these cities, you can expect to pay a higher insurance premium to cover the increased likelihood of getting into an accident.

The Amount of Your Insurance Deductible

Your insurance deductible is the amount of money you are responsible for paying before your insurance coverage kicks in. If your insurance deductible is $500, for example, a repair that costs $3,000 would result in an insurance payout of $2,500 ($3,000 minus $500). Because this reduces the potential costs the insurance company will have to pay, they are then able to pass these savings on to you in the form of a lower insurance rate.

Be careful though; if you’re involved in an accident and your deductible is too high, you may wind up paying more than you can afford out of pocket. A great approach can be to start with a smaller deductible, then increase it over time as you build up savings, thereby reducing your insurance premiums as you go.

The Type of Insurance You Choose

Insurance that only pays for damage you cause to third party vehicles and property will naturally cost less than insurance that also covers damage to your own vehicle since the potential liability to the insurance company is lower in the former scenario.

It is important to select the right type of insurance coverage to meet your needs and protect yourself and others. A professional understands these risks and can help you choose coverage that not only protects you, but also reduces your financial risks in case of an accident.


Beyond these factors, your credit score, criminal record, and payment history can affect your rates as well. Ultimately though, choosing to work with an insurance broker is your best bet for reducing your insurance premiums. Pacific Reliance Insurance™ works with many insurance companies that offer different coverage and incentives. We understand which carriers might be the best fit for your needs and we'll work with you to help you select the right coverage and the best value—a clear advantage over the do–it–yourself approach!

Once we begin working together, our customer service will continue to monitor your policy, make recommendations and watch for changes that will affect your monthly premiums. Better drivers deserve a better auto policy.
Contact us today!

Pacific Reliance Insurance™

"The right coverage, the best value. That is our policy."™

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