Factors That Affect Auto Insurance Rates

Insurers take into consideration a number of factors when determining auto insurance premiums. Some of these factors are controllable, while others, such as age and gender, are not. Statistically, a 16-year-old male who drives a Mustang is more likely to be in an accident than a 40-year-old father driving a minivan. While it is unfortunate that we cannot control how old (or young) we are, there are things you can do to keep premiums low.

Auto Insurance Rate Factors You CAN'T Control

1. Your Age
   The youngest and oldest drivers among us are the most likely to have accidents.
   
2. Your Gender
   Women are generally safer drivers than men.
   
3. Your Marital Status
   While technically this is something you can change, rates do tend to fluctuate depending on whether you are married or single.

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Factors you CAN Control

1. Your Driving Record
   Speeding violations, parking tickets, and other small offenses all count toward your insurance rate.
2. The Amount of Coverage You Want
   The more coverage you have, the more you pay. Of course, you should always feel comfortable with the amount of coverage in your policy—it's never a good idea to get out on the road and not feel secure that, should anything happen, your coverage may not be enough. Many people qualify for discounts (suchs as safe driver discounts and anti-theft device discounts). Be sure to check with your insurance agent to see what discounts you qualify for.
3. Your Vehicle
   A sports car will command higher premiums than a 4-door sedan. Also, more expensive cars will require higher premiums, as they have a higher probability of theft and higher maintenance and replacement costs.
4. Where You Live
   Geography plays a role in your insurance rate. City dwellers are more likely to get into an accident or be victims of auto theft than people who live in rural areas.
5. Credit Rating
   Insurance companies view having poor credit history (or even no credit history) as indicative of a higher risk.
6. Other Factors
   Things such as the how long you've been on the road (driving experience), the number of miles you drive in a year, and the distance you drive to and from work may have an affect on the rate offered.

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**Auto Insurance Finder is not an insurance broker or carrier. Content on this site is for comparison and informational purposes only. The products and services listed on this site may not be available in all states.

Last Updated: November 10, 2009