What You Need to Know About Car Insurance Rates


With millions of cars on the road, 2016 experienced an increase of 5.6% in traffic deaths rising to 37,461, 1,715,000 injuries, and 4,548,000 car crashes causing property damage, according to the USDOT.

Auto insurance protects against financial loss due to an at-fault accident. In most cases, you have been paying insurance premiums every year since you began to drive. Yet, there are many aspects of car insurance that are not well known, which include the following:

Not Everyone Buys Insurance

Auto insurance requirements vary across state lines: Some states have no-fault laws, which mean each driver pays for their own damages. Others, like Virginia, offer insurance waivers, allowing you to drive uninsured for a $500 annual fee.

As a result, most policies offer uninsured or underinsured provisions in the policy, which protect you in the event a person, without adequate coverage, hits your vehicle.

Not All Insurance Companies Charge the Same Rate for the Same Circumstances

Companies offer a diverse range of discounts and riders that evaluate drivers using different algorithms. Comparing rates across companies is the best way to find the best policy at the lowest rate. Aggregator websites like Quote Wizard can simplify the process.

Honesty is the Best Policy

Failing to add a family member who drives your car, not accurately disclosing the car’s use, or listing where you park can lead to unpaid claims and canceled policies.

Non-family members who drive your vehicle without carrying insurance can also create problems in an accident.

It is best to disclose infractions when getting a quote. Companies always pull your driving record. You can receive a copy of your driving record from the local DMV or your current insurance company.  However, if a ticket is still in the works, it could be over a year before the incident appears on your report.

Red Does Not Mean Higher Rates

The color of the car does not impact auto insurance rates. Things that do impact insurance rates include the year, make and model of the car, your age and driving record, your credit, gender, and marital status.

How You Use the Vehicle Will Drive Rates

Insurance companies want to know if you use your vehicle for the daily commute or only for pleasure? Driving the car for work-related purposes such as sales calls, ridesharing, and other work-related activities can increase your rates.

Pricing will also change based on the number of miles you drive each year.

Price Tag Doesn’t Reduce the Chance of Theft

Some cars are more vulnerable to theft than others. For instance, in 2012 there were 58,596 Honda Accords stolen ranging from 1990-1997 models. Due to the increase thefts for these makes and models, car insurance premiums for Honda Accords are higher than similar cars built the same year.

In some cases, a thief will steal the car and then sell the parts. Insurance companies track cars popular with thieves, which can raise your rate, even if you do not drive a higher-end vehicle.