Compare Car Insurance Quotes

In 3 Minutes, Save 32% on Average. Compare Quotes from 50+ Providers for Free!

new old car

Do new cars cost more to insure?

new car

If you’re thinking about buying an older model vehicle or maybe a brand-new vehicle, you might be interested in knowing if the car year influences insurance rates. The model year certainly does have an influence on insurance rates. However, it is important to note that it is not the only thing that affects your insurance rates.

Factors that affect car insurance rates

There are many different factors that affect car insurance rates. However, some factors have a larger impact on your insurance rate than others. It is important to recognize what factors have the largest influence on your insurance rates. Knowing these factors can help you to be able to get a lower insurance rate. The main driving factors that influence your car insurance rates are the following:

  • The amount of coverage that you have
  • Where you are located
  • What you’re driving record is like
  • How old you are
  • Your marital status
  • Previous claims history
  • Your credit history
  • The vehicle you drive
  • Theft rate of your vehicle
  • What gender you are
  • How much you drive
  • What your deductible is
  • How long you have been with your insurance company
  • Where you park your vehicle

How are car insurance premiums calculated?


Car insurance premiums are essentially the product of a car insurance company doing some calculations. These calculations consider all of the main driving factors for insurance as well as some smaller driving factors such as how far you will be driving, your previous insurance coverage, and your marital status. Your premium is essentially your car insurance company taking these factors and weighing them differently to come up with a number. This is the main reason that car insurance companies have different insurance rates from one another. Each car insurance company formula is different as they each think that different factors deserve more weight than others.

Factors that raise insurance premiums

One unfortunate thing about car insurance is that you can’t always change some of the factors that raise your insurance premium. There are many things that can cause your premiums to rise. Although, there are some factors that cause sharper rises in your insurance premium than others. It is important to recognize these factors so that you have the best chance at getting a low-cost insurance premium. Here are some of the main factors that influence and raise your insurance:


Age plays a huge role in calculating your car insurance rate. Many studies have been done regarding age and the likelihood of getting into an accident. It is a well-known fact that a younger person is more likely to get into an accident while driving. For this reason, insurance rates are higher for younger people.


Where you live has a huge role impact on your car insurance rate. In Canada, there is a huge difference between the average insurance premium costs in different provinces. If you live in the middle of nowhere, you’re likely going to have a low insurance rate. However, if you live in the city, you’re likely going to have a high insurance rate.


One driving factor of high insurance rates is your gender. If you are a male driver, you’re more likely to get into an accident than a female driver. This is especially true for young male drivers, who have the highest insurance rates in the industry.

Driving record:

If you have a bad driving record, you’re going to be paying a lot more for insurance. A bad driving record shows that you have a history of making poor decisions. An insurance company sees that and sees a risk. Especially if you are young, a bad driving record can have a massive impact on your insurance rates.


The type of vehicle you drive can have a fairly large influence on your insurance rates. A sports car or an expensive car, is going to cost you more money for insurance. This is because sports cars are known to drive fast. Fast driving increases the risk for auto insurance companies as it is more likely that you will get into an accident. The same sort of thing is true for expensive cars. If an expensive car breaks, the insurance company is going to have to pay more to fix it. Hence why vehicles play a large role in determining your insurance rate.


The amount of coverage you have plays a huge role in determining your insurance rate. The more coverage you have for your vehicle, the more money you’re going to have to pay for insurance. If you want to pay less money, you almost always have the option of raising your deductible. Unfortunately, doing this will mean that you will have to pay more money out-of-pocket if you happen to get into an accident. This

How can you save money on car insurance?

save money

One of the best ways to save money on car insurance is not by shopping around. Instead, one of the best ways you can save money on car insurance is by driving correctly. If you obey all speed limits, drive with caution, and use defensive driving tactics, you are going to save on car insurance. Although you might not notice the savings instantly, you will notice them years down the road. When you drive safely, you are much less likely to get into an accident. It might not be the easiest thing to do at first as lots of people live busy lifestyles. However, if you make the effort, it is much more likely that you will be able to continue to do so. You will be much less likely to get into an accident and much more likely to be able to enjoy yourself once you reach your destination.

To Conclude:

Knowing the factors that affect your insurance premium is extremely important. Paying attention to these factors allows you to be able to see things from an insurance company perspective. To an insurance company, you are a potential liability for them. All it takes is one accident and you could potentially cost an insurance company millions of dollars. Looking at things in this way has hopefully opened your eyes up to the reasons why you pay as much as you do for auto insurance. Many people see their insurance company as just a monthly obligation. Instead, you should try to see them as a personal lifeline that will be there for you in a time of need.

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.