To calculate the price of a policy for your car, insurers take into account different factors that vary according to the insured and their life history. For this reason, before making a decision between one coverage or another, we advise you to know what these points are. Take a look at this guide!

Having car insurance that suits your needs not only means that you are complying with the laws and that you will avoid a large fine.

Hire the best car insurance can mean great peace of mind in the event of a claim not only for you and your family but also for those third parties with whom we did not expect to cross.

However, we all agree that finding the right coverage is not always easy. But if you know how insurers calculate the value of their policies according to each client, the path to the correct choice will be much more bearable.

Let’s review below those factors that the company will take into consideration when calculating your car insurance:

The driver

Undoubtedly, the first factor that the insurance company will take into account when calculating a car policy is the characteristics of the driver taking the insurance.

In this sense, there are several components that alter its final price, and that influences the increase or decrease of the risk percentage. Do not forget that insurers consider, according to their characteristics, various types of drivers.

Let’s review the most important points:


If your driving record is empty or if you have all the points on your driving license, it is very likely that the insurer does not have enough information to determine your risk factor and know if you are a responsible driver or not.

However, the company can draw on statistical data and use an average of behavior according to the ages of former customers.

It is important that you know that, usually, the youngest drivers (between 17 and 25 years old) are in the first risk step and are more likely to suffer an accident.

Also, the more years you have driving experience and the older your identity card indicates, the lower the price you will have to pay for your insurance.


Another point that can also affect the price of your insurance is the type of profession you have or the work you do.

Indeed, certain occupations have been shown to have a higher risk of car accidents, which generates an immediate increase in the price of the policy.

Place of residence

The place where you live also alters the risk factor of the insured.

Keep in mind that if you live in a big city with high congestion rates or if your house is located on a mountain that is difficult to access, the chances of having an accident are higher and the value of the coverage as well.

Car use

Depending on the use you want to give the insured car, the company can also vary the cost of your policy.

It is important that you know that insurers calculate the time that, depending on the route you usually take, you will spend on the road, in the city, on dangerous routes, in hours of congestion, etc.

In turn, the estimated number of kilometers that you will travel in a year will also serve as a guide for the company to calculate your coverage.

Don’t forget that the more you drive, the more likely you are to have an accident and file a claim.

The car

As you can imagine, the car itself is another of the fundamental factors when calculating the price of a policy.

The type of car you have decided to buy and the characteristics of it can make the insurance go up or down by a few dollars.

Among the points that insurers take into consideration regarding the car itself are:

  • The brand.
  • Its age.
  • The car model.
  • Its value.
  • The power.
  • Your repair costs.
  • The type of fuel you use.
  • The kilometers traveled.

Do not forget that the higher the value of the car or the more recent it is, the more you will have to pay for its insurance.

Ultimately, the company will raise the price of insurance in the face of any factor that may mean a greater risk of loss.

Your conduct history

Do you have many fines in your claims history? Do you have no points left on your driving license? … then you need to know that you will have to pay more than the rest for your car insurance policy.

Every time a potential client requests a car insurance quote, the company accesses his history and verifies his behavior as a driver in recent years.

However, and although most insurers will make you pay more if you have had many violations in recent years or if you are a novice driver already have 2 or 3 claims, each one is free to set its own prices.

The type of policy

The last criterion that insurers take into account when calculating the price of your policy is, without a doubt, the type of car insurance you want to take out.

In this sense, it is logical to think that companies should vary their rates according to the risk they assume when insuring you.

Taking into account all the previous points, it will not be the same for a company, to offer you only Civil Liability coverage than to offer you Full Risk coverage.

You must bear in mind that the more risks are covered by your insurance, the higher the price you will have to pay. And at the same time, the more people are insured, the higher the final cost will also be.


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