👤 Who You Are: Demographic Factors
Age
Younger drivers often pay more, not because they’re bad drivers, but because Insurance Companies are taking risks on the unknown. Once you hit your 30s, rates tend to go down if you’ve been safe behind the wheel.
Gender
Some states allow gender to be used in pricing, based on trends in crash data. Others have banned it. Where it’s allowed, gender can slightly affect your rate.
Marital Status
Married drivers often get lower premiums. It’s not about romance, just that married people tend to file fewer claims.
🧠 Your Driving Behavior: History on the Road
Driving Record
Tickets, DUIs, and past accidents can raise your premium. A clean record is one of the best ways to lower your rate.
Claims History
Even if a claim wasn’t your fault, insurers look at patterns. Frequent claims may lead to higher costs. This is why small dents usually are fixed out of pocket.
🚗 Your Ride: Vehicle Factors
Make & Model
A sporty or high-end car usually means higher premiums. Safe, affordable vehicles often come with lower costs.
Vehicle Value
The more your car is worth, the more it would cost to fix or replace — and that’s reflected in your rate.
How Much You Drive
If you’re on the road a lot, the chances of an accident go up. If you drive less than average, you may qualify for a discount.
📍 Where You Live: Location-Based Factors
ZIP Code
Premiums vary by area. If you live where theft, weather damage, or collisions are common, expect to pay more.
State Requirements
Each state has its own insurance laws. Some require more coverage than others, which affects your price.
💼 Your Life Outside the Car: Experience-Based Factors
Credit Score
In most states, a higher credit score can lead to a lower rate. Why? Because insurers believe it signals financial responsibility — and fewer claims.
Occupation
Some professions are linked to safer driving habits. Depending on your job, that might help your premium.
Discount Triggers
- Good student: High grades can earn a discount.
- Bundling: Combine home and auto policies to save.
- Safe driving: A few clean years behind the wheel can lower your cost.
📘 Why This Matters
Understanding these premium factors means you’re no longer in the dark. You might not be able to change your age or ZIP code easily, but you can focus on what you control — like safe driving and shopping around.
Each section on this page can be explored further. Click on a topic to learn more and get tips that might help you save.