4 factors you may not know that affect car insurance rates

4 factors you may not know that affect car insurance rates

Have you ever wondered what determines the rate of your car insurance? Here is a list of contributing factors, as well as some bite-sized tips on how you can save on it.

1. Age

Age is often linked to experience. Hence, it is not unusual for insurers to offer a higher car insurance rate to young drivers who recently got their licenses as compared to older drivers who have been driving for many years.

Tip: Premiums are likely to be lower if you’re being added as a named driver rather than leaving it anonymous.

2. Dash cam

For some insurers such as MSIG, installing a dashcam in your car can get you a discount up to 5%. That is because a dashcam is very useful when it comes to gathering evidence for most car accidents. Not only do you get a reduction in your premium, it can also ease the process of claiming for any damage with your insurer. To get this discount, all you usually have to do is to submit a photo of the dashcam in your car.

Tip: When it comes to dashcams, most people install front but not rear cameras. However, installing a rear camera not only helps to identify reckless driving behaviour, but also deters extreme tailgating—which greatly reduces the risk of accidents.

3. Vehicle type

Some insurers develop their own vehicle safety rankings by using data from customers’ claims and analyzing industry safety reports. The brand, model, make, age, and price of your car all have an effect on the premium that you’re required to fork out.

Tip: Before purchasing a car, do some background research by checking with your insurance agent to find out the premiums that come attached with that particular vehicle and whether it has strong safety ratings.

4. Driving history

If you have a history of getting into driving accidents, you will likely have to pay a higher rate of car insurance due to perceived bad driving habits. On the flip side, a clean driving record could be useful for getting a discount.

Tip: Develop safe driving habits such as braking, cornering, and accelerating with care. This would greatly reduce the likelihood of getting into accidents. In addition, it is always good to check in with your agent a year after purchasing your car insurance, especially if your record is unblemished. Chances are, you could be in line for a discount.


The number one rule to getting the most out of your insurance is by asking. If you’ve got any inquiries regarding motor insurance, feel free to reach out to us here or find out more here.

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