What Are the Top Elements that Determine One’s Car Insurance Premium?

Buying a new car comes with a whole lot of responsibilities. From driving it safely to being on top of the payments, you must pay close attention to multiple factors. When it comes to one’s car insurance premiums, there are several factors that you have to prioritize.

While browsing through different car insurance types and available quotes, you might wonder, “What determines my car insurance premium?”

If this question bothers you, you have come to the right place. This article will highlight all the relevant tips.

1. Using VIN Check

VIN, or the Vehicle Identification Number, is an essential metric that car insurance providers use to determine information about the car’s make, model, year, place of manufacture, and other details.

When requesting a car insurance quote, the insurance provider will ask for the VIN to ensure that the quote is based on the specific details of your car. Also, in the event of an insurance claim, the VIN is used to confirm the car’s identity. This explains why you need to understand the tips and tricks to find car insurance quotes by VIN for accurate pricing and justified quotes by insurers.

2.      The Owner’s Driving History

To be fair, how you drive your car on the road makes a huge difference in your insurance premiums. If you are a reckless driver with a history of getting into accidents, it makes sense for your premiums to be higher.

The insurance premiums are generally higher since the car insurance company is already taking a risk with the plan. However, if you have a good driving history, it automatically translates to lower insurance premiums.

3.      The Car’s Safety Features

While we are on car models and how they influence a car’s insurance premium, let us discuss safety features. Some safety features that can significantly reduce car insurance premiums include a car lock or anti-theft system.

Since safety features provide your car with an “additional layer of security,” it isn’t surprising that car insurance companies love them.

4.      The Number of Times you Have Claimed in the Past

Do you claim your car insurance for even the minuscule scratch you get? If yes, that will reflect on your car insurance payments. Insurance companies, for the most part, try to minimize the money they have to pay per claim.

So, raising frequent claims for the most minor issues pertaining to your car will account for higher car insurance premiums.

If you have not had any claims in the past year, the car insurance company might also give you a hefty discount.

5.      The Kind of Coverage You are getting

The last factor that will influence your car’s insurance premium is the kind of coverage you are getting. If you are looking for third-party insurance coverage only, it will be significantly cheaper than a comprehensive car insurance coverage.

Ideally, it’s beneficial that you sit down with your insurer to discuss your budget and your best options so you can pick the best car insurance you won’t regret.


Car insurance premiums involve a lot of elements. If you recently bought a car and need clarification about how to get about things, we hope these factors help you figure things out correctly. Ideally, you want to weigh your options, research for some time, and then settle on one that fits your bill the best.

About Andrew

Hey Folks! Myself Andrew Emerson I'm from Houston. I'm a blogger and writer who writes about Technology, Arts & Design, Gadgets, Movies, and Gaming etc. Hope you join me in this journey and make it a lot of fun.

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