The Major Factors That Affect Car Insurance Premiums

The Major Factors That Affect Car Insurance Premiums

We all know that car insurance is mandatory and premiums can really vary from the many insurance companies, yet they all follow the same guidelines when calculating car insurance premiums. Insurance is all about risk and by gathering information, the insurer can work out the risk level. Here are the criteria that insurers use to calculate premiums.


Of course, a 17-year old is more at risk of having a car accident than a 50-year old with many years of driving experience. It is a major problem for young people who wish to drive a powerful vehicle, as premiums would be sky-high. Most young people drive cars with small engines, as this is the cheapest category. Of course, some insurers are cheaper than others and you can use Google to compare car insurance premiums.

Driving History

Any driver who has not been involved in an accident would be able to claim what is called ‘no claim bonus,’ which is a reduction based on good driving history, and that can add up to as much as 60%. See the cheap deals on offer in your area. For example, you may want to check out 3rd class insurance or ประกันรถยนต์ชั้น3 in Thai, where you can get cheap cover if you have a lot of driving experience.

Credit Score

While you might wonder what a person’s credit rating has to do with driving, research shows that those with a poor credit score tend to claim more than people with a good credit rating. If you have a few small outstanding debts, pay them off before applying for car insurance and it might result in lower premiums.


In some countries, living in the city would mean slightly higher premiums, as the insurer sees a marginally higher risk for those driving in the city. As a general rule, the more remote your location, the lower the premium, so expect to pay higher premiums if you live in Bangkok. You may want to learn about the ‘no claims bonus,’ and there are related articles on this topic which you can find online.


This is only applicable to young drivers; a young male driver would pay a little more than a female of the same age, which is due to statistics that show young male drivers have more accidents than female drivers.

Average Annual Mileage

The more miles you drive, the higher the risk of being involved in a collision, which is why most insurers want to know how your annual mileage looks.

Marital Status

This might affect car insurance in the western part of the world, due to the fact that married drivers file fewer claims than unmarried drivers. Again, this is nothing personal and is only based on market research and statistics.

Claims History

When you make a claim in your vehicle insurance, this information is collected on a global database and if you are a regular claimant, you will be red-flagged and that will result in higher premiums. Indeed, if the damage is minor, you are better off repairing it yourself, rather than making a claim, as the increase of premium will be higher than the cost of the repair.

As you can see, there are quite a few factors that influence insurance cost and by searching online, you can easily compare and find the best deal.