clock July 16, 2020 comments No Comments flowchart Automobile InsuranceOur Blog tag Saving Money

Many drivers wonder how insurance companies calculate their Rhode Island auto insurance rates. That’s not surprising considering they can vary greatly between individuals and companies.

Even though each company uses their own algorithm, most all of them rely on the following factors in some form.


Insurers base insurance rates on the location of the insured individual, as risk levels vary between regions. Urban areas tend to pay more than rural areas as the chances of theft, vandalism, or accident increase with density. Repair, medical and legal costs as well as insurance fraud and regional weather trends can also influence insurance rates.


Generally, older drivers have fewer accidents. As a result, drivers under 25 years of age generally pay more for insurance.


This is a sore spot for male drivers as they pay more for insurance. However, statistics show that women tend to get fewer DUIs and they get into fewer accidents. Consequently, they pay less.

Driving Record

Naturally, this factor carries great weight as it is directly connected to you. If you have a clean driving record, you’ll pay less. If you’ve had serious traffic violations or an accident, you’ll pay more.

Those with a long, safe driving history will pay less than a new driver with a clean driving record.

Vehicle Make & Model

Insurers look at the make and model of your car to evaluate accident safety, the cost of repairs, and how well it protects occupants. They also look at how likely it is to be stolen. Vehicles with good safety features often qualify for discounts. Vehicles favoured by thieves cost more to insure. Luxury or sports cars typically cost more than sedans or compacts.

Vehicle Usage

Insurance companies also look at “how” you use your car. Business use, for example, requires special coverage and may lead to higher rates. If you drive your vehicle for personal use only, rates are based, in part, on the amount you drive.

Those that only drive occasionally for pleasure may qualify for lower rates. Those that make long commutes will probably pay more.

Marital Status

Whether you are married or not does carry some weight, but not near as much as most other factors. However, each insurer decides how much it impacts your premiums.

Credit History

Insurance companies look at your credit as they consider it a good indicator of risk. In other words, if you handle credit well they see you as a responsible person and less risky.

Coverage & Deductibles

Premiums also vary depending on the coverages and deductibles you choose. Rhode Island mandates minimums, but these do not provide sufficient protection.

Insurance companies also look at your previous insurance coverage. Continuous coverage is preferable to insurance gaps which appear riskier.

As mentioned, insurance rates can vary greatly between companies, as they each use their own method to calculate risk. If you’re looking for the best possible coverage at the most reasonable rates, we can help.

Loiselle Insurance Agency has access to multiple carriers and we’ll provide you with unbiased advice. Why pay more for auto insurance, when we can find you the best solution for your budget?

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