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Car insurance by factor

When it comes to car insurance, many things can change how much you pay. Knowing these factors can help you save money and find the best insurance for your needs. In this guide, we’ll talk about different factors that affect car insurance rates.

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Picture of Written by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>

Written by Alyssa DiCrasto

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Edited by Rob Deming

Last updated: August 8th, 2024

Written by Alyssa DiCrasto

Edited by Rob Deming

Last updated: August 8th, 2024

Driver factors that affect car insurance prices

Car insurance is a contract between you and an insurance company. You pay them a premium, and they help cover the costs if you get into an accident or if your car gets damaged. Car insurance can also protect you from paying large amounts of money out of pocket if you hurt someone or damage their property with your car.

The premium you pay for your car insurance will be different than the premium your friend or neighbor pays. This is because insurance companies look at many things to decide how much you should pay for car insurance. They use these factors to figure out how likely you are to get into an accident or file a claim.

Why does this matter?

By understanding the factors insurance companies consider, you can find ways to lower your car insurance rates.

Explore car insurance by factor

Click on of the factors below to see how each impacts the average cost of car insurance:

Where you live
Coverage level
Credit score
Marriage
Age and gender
Profession
Education level

Where you live

Where you live can greatly affect your car insurance rates. Different places have different risks, like traffic, theft, and weather. For example, if you live in a big city with a lot of traffic, you might pay more for car insurance than someone who lives in a small town.

The state you live in, the zip code you live in, and the specific place you park your vehicle will all impact your car insurance rates.

Learn more about how where you live impacts car insurance >

Coverage level

The amount of coverage you choose can change your insurance costs. More coverage means higher premiums, but it also means better protection. There are different types of coverage like liability, collision, and comprehensive. Liability covers damage you cause to others, collision covers damage to your car from an accident, and comprehensive covers non-accident damage like theft or natural disasters.

Most states require liability coverage, and if you get state minimum car insurance coverage, you will pay the least amount for your car insurance. If you want your own vehicle to be covered in an accident, you will need a full coverage policy.

Once you decide what kind of coverage you want, you need to decide how much coverage you want. These are called your coverage limits, or the maximum amount your car insurance will pay for a certain claim. If you have higher limits, your car insurance may be slightly more expensive, but you can often get significantly better limits for an insignificant price increase.

Credit score

Your credit score is important for your car insurance rates. A higher credit score can mean lower rates because insurers see you as less risky. If you have a lower credit score, you might pay more for car insurance – up to 80% more depending on where you live.

More details on how credit score impacts car insurance >

Marital status

Being married can sometimes lower your car insurance rates. Insurers often see married people as more responsible drivers, which means they might be less likely to get into accidents. This can result in lower premiums.

Additionally, if you combine your car insurance policy with your spouse’s, you may qualify for a multi-vehicle discount.

Age and gender

Your age and gender can affect how much you pay for car insurance. Younger drivers, especially teenagers, often pay more because they are seen as higher risk due to their inexperience. Male drivers, especially young males, might also pay more because statistics show they are more likely to be in accidents. As you get older and gain more driving experience, your rates may go down.

Compare car insurance by age >

Profession

Some jobs can affect your car insurance rates. Certain professions might get discounts because they are seen as lower risk. For example, the following professions may be eligible for lower rates or special discounts:

Military
Teachers or education professionals
Nurses or healthcare professionals
Engineers
Employees of companies with a relationship with a certain company

This is because insurance companies believe people in these professions are more responsible and less likely to file claims

Education level

Your education level can also influence your car insurance rates. Some insurers offer discounts to people with higher education because they see them as more responsible. For example, if you have a college degree, you might pay less for car insurance than someone who did not finish high school.

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About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results.

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you.

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide.

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