what affects my car insurance

What affects my car insurance price and how can I lower it? If this question has been lingering in your mind, you’re not alone! While you could be tempted to reduce your insurance rate by lowering the amount of coverage or increasing your deductibles, that will possibly not be not enough.

Your overall insurance rate is affected by some factors in your control, including your driving record as well as others you can’t help like age. Identifying these factors will help you make more informed decisions about the vehicle you get and how to reduce your insurance rates over time.

After decades of running a dealership, at Motors On Wheels, we’ve interacted with thousands of customer for both, buying and selling cars. This has allowed us to collect the most asked questions in regards to insurance. Enjoy our take on car insurance!


The age of your driving license affects the cost of your insurance rates. The logic here is that less experienced drivers are more likely to get involved in accidents than experienced ones. If your license is less than five years old, we recommend adding an experienced driver to your car insurance.

This even works better if it’s someone older than you like a parent with decades of experience. However, consult them first and ensure they’ve not claimed too many times on their insurance.

Where you reside and park

If your area of residence has a higher rate of car-related crime or many insurance claims, your insurance quote is likely to be higher. Even so, we wouldn’t recommend that you move away from the area to avoid paying hefty insurance costs.

If you park in a secure place, such as a garage, the insurer assumes that it’s less likely to get damaged or lost, which translates to lower rates.

Stealability of your car

Is your car too prone to theft? Usually, your insurer will assess this variable based on the security features you’ve installed in your vehicle like alarms.

Also, modifications are more likely to raise your car insurance as this might increase the likelihood of theft. If you intend to pimp your car by lowering or raising it, adding bigger wheels or other fancy features, then you might want to reconsider.

Car insurance companies know that a car works best when left how the manufacturers made it. They know that modifications such as a raised back may not be a good idea safety-wise while they also increase the risk of theft.

Of course, this doesn’t mean you can’t personalize your car, only that you need to keep modifications moderate. You can also contact your insurance to see what they allow and how different changes affect your insurance rates.


Insurance companies also consider the correlation between a person’s risk of getting involved in an accident and their profession. Typically, they look at how much you drive and where. For instance, a journalist is constantly on the road and may have a higher risk compared to a pilot who will only drive home from the airport.

Some careers that attract the highest car insurance rates include traveling salespeople, delivery drivers and footballers. Others such as paramedics, nuns, and police officers get the best prices as they’re deemed to be more careful than the average driver.

Finally, your annual mileage is also taken into consideration as the more you drive, the higher the risk of being in an accident.

Gender and age

According to statistics, male teenagers are more likely to cause accidents than their female counterparts. On the other hand, older men have lower accident rates than older women. Others suggest that women drivers are in more minor accidents compared to men.

Most providers know that the younger the driver, the higher the risk insured. Unfortunately, you can do nothing much about this other than improving your driving history.

Driving history

If you’ve received any tickets, caused accidents, or made a claim before, the insurer assumes that you’re likely to make another claim in the future. Some insurance companies will even refuse to offer you coverage if your driving record is bad enough.

The good news is these blemishes don’t last for too long. Even if you’ve been involved in an accident in the past, driving carefully to avoid future problems can keep your rates at a similar level as drivers with clean records.

Most non-injury accidents and tickets stop only affect your insurance rate for three years or less, while injury accidents are not likely to last past five years. However, a DUI ticket can affect your rate for up to 10 years, and many companies will not give you insurance with that.

Car safety rating

The more safety features your car has, the less of a risk you are to the insurer, meaning cheaper rates. Some of the crucial safety features include airbags, traction control, and automatic seat belts among others.

If you own a car with a lower safety rating, you can invest in additional security measures to reduce your insurance rate. If anything, you also want to drive in a car that can save your life!


Generally, larger cars are considered to be safer than smaller ones with the same safety rating. This shows in the comparatively lower premiums that insurers charge for the former. But it’s also worth noting that the larger the engine, the higher the premiums you will pay. Cars with larger engines are statistically more prone to accidents as they tend to be more powerful and faster on the road.

How to find cheaper car premiums

In a nutshell, various factors come into play when determining insurance pricing:

  • Keeping a clean driving record
  • Parking in a safe area
  • Adding fewer modifications
  • Gaining more experience
  • Getting a safer car

All these factors are used by your insurer to predict how likely you will make a claim.

Where you buy your cover matters too, either directly from the company or via a third party. Buying from the insurer directly has more advantages as the packages are usually customized to your needs.

Save on insurance premiums with a better car!

Are you looking to upgrade your ride and save money on insurance? We have one of the largest collections of used cars and trucks in Houston, TX. All our vehicles are checked thoroughly for quality and functionality. We even give you a warranty of up to five years when you buy from us!

Please fill out this contact form or reach us on 713-660-8666 for an unbeatable deal!