7 Factors That Affect Your Car Insurance Premium: A Comprehensive Guide

car insurance premium

Several different variables can impact your car insurance premium, which is why it’s important to understand what they are and how they affect the cost of your policy. Although every insurer has its own specific set of criteria when it comes to determining premiums, some general rules apply when looking at any personal car insurance quote. However, each insurer will have its specific rating scales for each of these factors.

Depending on the insurer or the type of policy you choose, there may also be different classifications within those main categories example, some insurers may consider age as a separate criterion whereas others may roll it into one general ‘risk profile’ category with other factors like driving record, vehicle type and occupation.


Age is one of the most crucial factors when it comes to car insurance premiums. This is because as you get older, you are almost certain to see an increase in your premium. The exact amount will depend on your age and the insurer you choose to go with. For example, if you are in your early 20s and looking to get a new policy, you might see an increase in the tin cost of your premiums by 10% or so. If you get into your 40s or 50s, however, the cost could skyrocket.

In general, insurers believe that people in their 50s have a higher risk of liability due to more likely health issues and/or occupations that could involve a higher risk of injury. This could include things like being a doctor, teacher, police officer or firefighter. Age is a very big factor in insurance premiums because it is a high-risk factor and most people do not want to take on a high-risk person. If an insurer offers you a policy at a young age, that is likely going to remain the same throughout your entire life.


Generally, women tend to pay less for their car insurance than men. This is because statistically, women are less likely to get into an accident than men. This gender difference is one of the biggest factors affecting any motor insurance quote, especially if you are looking at getting low-cost car insurance as a woman. This is because as a general rule, women are less likely to be involved in an accident than men.

Therefore, they are much less likely to be at fault, and therefore less likely to be involved in a car accident claim. This is reflected in your car insurance premium as the insurer considers you to be a lower risk. With this in mind, it is important to keep in mind that although women may pay less than men at the moment, this does not mean that it will always be like that.

Some insurance companies such as CIC Insurance offer products (CIC LADY AUTO) that target women. Women tend to be more careful on the roads hence they present diminished risks to insurance providers. In addition, lady insurance products offer enhancements that fit into their lifestyles. For instance, CIC’s lady insurance offers an enhancement that covers a lady driver from the loss of her handbag. This demonstrates that your sex can determine the premiums you pay for insurance.


The type of occupation you have will have an impact on the cost of your car insurance premium. If you work in a high-risk occupation or in a field that is statistically likely to lead to you being involved in an accident, insurers will expect you to pay higher premiums as a result. This could be anything from being a taxi driver to a salesman, or even a doctor or a nurse.

On the other hand, if you are employed in a less risky profession, you can expect to see a much lower premium. This is because the insurer expects to see far fewer accidents in professions that are low-risk. So, if you work as a teacher, firefighter, police officer or any other occupation that is statistically likely to lead to you being involved in an accident, you are likely to see a higher premium compared to a person who works in a more protected environment such as a computer programmer.

Your Driving Record

Your driving record is another very important factor that is likely to affect the cost of your car insurance premium. If you have a flawless record, you can expect lower premiums compared to somebody with a few black marks on their record. However, different types of marks on your record will affect your car insurance premium in different ways.

There are six types of marks on your record that affect your premium. These are traffic convictions, at-fault accidents, mileage, license suspension/revocation, conviction withdrawal, and a poor driving record.

  • Traffic violations are the types of marks that can affect your premium the most, although they can depend on the severity of the infraction. For example, if you are caught driving 10-20 kph over the speed limit or without your seatbelt on, you will likely see a small increase in your premiums. If you have multiple traffic violations or are caught committing a more serious infraction, such as driving while intoxicated (DUI), you could see a much larger increase in your premiums.
  • At-fault accidents usually occur when one of the parties involved in the accident is at fault. With this in mind, you can see an increase in your premium if it was you who caused the accident. In some cases, the other person involved in the accident may also see an increase in their premium.
  • Mileage is a factor that is specific to some insurers and not others. This is because some insurers see the number of miles you drive as a risk factor. So, if you have a high amount of miles listed on your car insurance policy, you can expect to see a higher premium as a result.
  • License suspension/revocation is something that will likely affect your premium, but only if it is on your driving record. If you have had your license revoked or suspended, you will likely see a higher premium as a result.
  • Conviction withdrawal is a factor that can only occur if you have multiple traffic violations on your record. If this is the case, your insurer may decide to ‘withdraw’ some of your violations on your record. With this in mind, you can expect to see a larger increase in your premium.

Claims History

Policyholders with a high claims history tend to attract higher premiums compared to those who have not made any claims recently. Once you claim an insurance company, you lose all accruing non-claims discounts usually awarded on a year-to-year basis. Having a bad claims record can increase your premiums while having a no-claims record can reduce your premiums

How the Vehicle will be Used

The intended usage of your car is a critical determinant of the car insurance premium you will pay. In general, private cars attract lower premiums compared to public service vehicles. Auto insurance companies offer cheap insurance coverage to private motorists because their usage tends to have fewer risks.

Your Vehicle Type

The type of vehicle you drive will likely have a significant impact on your car insurance premium. This is because some vehicles are more likely to result in accidents than others. This could be due to the way the vehicle is designed to drive or the type of people that are more likely to drive that vehicle. Generally, SUVs and trucks are more likely to result in accidents than cars.

This is likely because people who drive SUVs and trucks are more likely to be involved in an accident than those who drive cars. Apart from SUVs and trucks, other types of vehicles could also have an impact on the cost of your car insurance premium. This could include the age of the vehicle if it is a classic or has been modified or has any special modifications. The cost may vary depending on the type of vehicle you drive.

Type of Insurance Cover Required

Finally, the type of coverage you need plays a significant role in determining the amount of car insurance premiums you pay. Comprehensive covers attract the highest car insurance premiums because it insures you against a wide range of risks. Third-party, fire, and theft policy is cheaper than comprehensive car insurance but the cover does not protect you from accidental damage. Third-party cover only protects you from liabilities arising from third parties affected by an accident involving your car.

Which insurance company is the right fit

If you have done your research, you should have a good idea of what type of coverage you need and what your budget is for premiums. Now it’s time to shop for the best company to provide you with that coverage. We at Shimin Insurance Agency believe that you have a right to get the best deals on car insurance in Kenya. Buying car insurance in Kenya can be a very expensive affair if you do not have the right knowledge. Contact us today to get the best deals on auto insurance and we will help you compare quotes from our different trusted partners and help you find one that best suits your needs.

Summing up

When looking at any car insurance premium, it is important to remember that many different variables will affect the cost of your policy. This means that even if you are a safe and responsible driver, you may still be forced to pay more for your insurance. However, if you can find an insurer that understands the specific circumstances you are in, you may be able to find a more affordable policy.

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