What Factors Impact My Car Insurance Rates?

What Factors Impact My Car Insurance Rates?

There are multiple different factors at play when insurance companies assess how much they’re going to charge you for your auto insurance. When looking at these various factors, the most important determinant of your premium is the amount of risk they present. Some auto insurance rating factors, such as driving record or vehicle type, hold more weight for determining your rate, while others, like gender or marital status are fairly insignificant.

Below we’ve included some notable factors that you should be aware of as they are the ones most often used by insurance companies to determine how much you pay.


Age is a particularly significant rating factor, especially in the case of young drivers. The most expensive premiums are often paid by teen drivers, as this age group is seen as especially risky by many insurance providers, and data shows that teen drivers drive more recklessly and get into more accidents than drivers in any other age group. This stands in stark contrast to what older individuals, let’s say 50-year-olds, pay, which is over $5,500 less per year. Age does become less impactful after age 20, and its impact becomes minimal after age 25.

Driving History

This rating factor is fairly straightforward; an individual’s past driving ability is seen by insurance companies as an accurate predictor of their future performance behind the wheel. On par with what would be expected, a history of speeding violations or other tickets will raise the cost of current and future insurance premiums. This factor’s influence on cost depends on the nature of the violations in a driver’s history; a speeding ticket will have less of an impact than a DUI or reckless driving would, and this is reflected consistently across all insurance companies’ average premiums.


Your province, city and postal code all play a role in determining your insurance rates. Car insurance is regulated at the provincial level and is dependent on each province’s regulations. Car insurance is priced by postal code to account for the external rating factors associated with each area. Insurance costs are higher in locations with more drivers. In many cases, drivers living in rural areas pay less than those living in urban areas.

If you are looking for auto insurance or someone with the knowledge and expertise necessary to manage your insurance needs, our competent team of insurance brokers at MLS Insurance can help. Contact us today and we’ll be happy to answer any questions you may have and find a plan that works best for you.

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