Many people are shocked when they first find out how much they are paying in auto insurance compared to someone they know. There are numerous factors that go into your specific rate. These factors will help you better understand why your rate is so high or low to see if there is a possibility to lower your rates.

1. GUIDE TO
UNDERSTANDING
AUTO INSURANCE RATES
Your gender and
marital status:
Where you live:
Your age:
Your occupation:
Your report card:
Your credit
history:
Men statistically
are at higher risk
for traffic accidents
than women,
which means they
tend to pay higher
premiums. Married
people are at lower
risk for accidents
than single people.
Depending on
where you live, your
insurance provider
may charge higher
rates if there is
a higher risk of
vandalism or theft.
The climate where
you live also can
affect your rates if
it is more likely to
cause damage to
your car.
If you’re under 25
or over 65, you
are more likely to
pay higher rates
because you are
statistically more
prone to be involved
in an accident. Teen
drivers also tend to
be more aggressive
drivers, which results
in higher rates.
People in certain
occupations (such
as teachers and first
responders) have
lower accident rates
than those in other
occupations (such as
lawyers and business
executives). This
means your job can
affect your rates,
even with a clean
driving record.
Students with higher
grade-point averages
are considered
to be more
responsible than
students with lower
grades. Insurance
companies often
provide discounts to
students with grade-
point averages of 3.0
or higher.
Insurers use
your financial
history, including
any bankruptcies or
outstanding debt,
to calculate your
insurance rates.
Making payments
on time and other
positive behaviors
can help lower
your rates.
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Make and model:
Features and equipment:
Cost of the car:
Certain types of cars, such as sports cars, are tied to
higher insurance rates because of their association
with aggressive driving behavior and the likelihood of
being involved in an accident.
A car with high-quality safety equipment can mean
lower insurance rates. On the other hand, cars that
have been modified to include larger engines can have
higher rates because of the increased risk of accidents.
The more a car is worth, the more expensive it is to
repair or replace in the event of an accident.
How often you drive:
Having a long commute and putting more miles on
your car will raise your rates because of the increased
risk of accidents. Driving less frequently and for
shorter distances keeps rates lower.
Your driving record:
The number of accidents you’ve been involved
in and the number of traffic violations you’ve been
convicted of are two of the most significant factors
in determining your insurance rates. However,
inexperienced drivers are more likely to have
higher rates, even with a clean record.
YOUR CAR
WHO YOU ARE
HOW YOU DRIVE
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Here’s a look at some of the factors that are taken into
account to determine a driver’s auto insurance rates: