There are several factors that affect your auto insurance rate, including your age, location, driving record, vehicle usage, accidents, vehicle type and many more. Its important to note that the average rate will vary from state to state as each state has its own minimum car insurance limit requirements.

Location

Your location is also one of the most important factors in determining how likely you are to have a claim or get into an accident. If you live in a highly populated area and you’re at a higher risk for car theft, vandalism, and harm to your car, you’re likely to pay more for comprehensive and collision coverage. Additionally, different states have different coverage requirements, including how much liability coverage you’re required to carry, which could affect your cost.

Age

Age is a significant factor in determining your car insurance rate. On average, car insurance rates are higher when you’re younger and tend to decrease as you age. Rates decrease because younger drivers are generally more likely to have accidents or take risks on the road.

According to the CDC, teens are almost three times more likely to be in a fatal crash than drivers 20 years and older. This kind of risk results in much higher rates compared to experienced drivers. But it’s not all bad news for teen drivers. There are companies that offer Good student discounts if the parents add their eligible teen driver to their policy in order to lower the cost of insuring new drivers.

Vehicle usage

If you use your vehicle mostly for pleasure or commuting, you’ll usually pay less than a driver using their vehicle for other purposes. If you use your vehicle for business or for ridesharing services like Uber and Lyft, some companies may charge you more, or may even require rideshare insurance coverage. How much you drive can also affect your rate.

Marital status

Adding your spouse to your auto policy may offer some small but favorable benefits, including potentially lower costs and the convenience of being on one policy.

Payment method

Some insurers offer various policy discounts depending on how you pay. If you pay your premium in full, go paperless and make automatic monthly payments you could save some more.

Credit

Many insurance companies use credit-based insurance scores to calculate car insurance rates if permitted in a state. Broadly speaking, a better credit-based insurance score equals a better rate. And no, getting a quote will not impact your actual credit score.

Continuous insurance

If you have no gaps or cancellations in your insurance history, you’ll typically get a lower car insurance rate.

Vehicle type

The vehicle make and model you drive can affect your car insurance rate. Factors include how much it costs to repair or replace that particular vehicle, if it has a higher theft rate, if it’s more likely to be involved in insurance claims than other models, and its safety features.

For example, insuring a sports car or convertible may cost more than a standard sedan. And in the same token, a Tesla may cost more to insure than a Nissan electric car, since the Tesla may be more expensive to repair or replace.

Note: Your car’s characteristics affect your insurance rate differently based on the coverages you select. The value of your car will impact your rate more if you have comprehensive and collision, compared to if you only have liability.

Coverage selections

All things considered, the more insurance coverages you have, the higher the premium. State-minimum coverage will always be the lowest car insurance. The good news is that sometimes you can increase your coverage amounts by thousands, and your car insurance rate will only change minimally. Your deductible amount will also impact your rate.

Your driving record

A better driving record, especially a clean driving record, can get you a better rate.  Accidents and tickets can increase your insurance rates.  New drivers with no record may also pay more.

Speeding and traffic tickets

If it’s your first speeding ticket in three years, you may not get an increase. But, if you get two or more tickets in a three-year period, chances are your car insurance premium will go up. The good news is that the increase won’t be permanent, and speeding tickets typically fall off your motor vehicle record after a few years.

At-fault accidents

Similar to speeding tickets, most at-fault accidents will raise your rate, but the increase won’t be permanent. Your insurance company will stop charging you for the accident after several years (the length varies by insurer and state).

Keep in mind that accidents don’t always raise your rate as some companies offer accident forgiveness for an additional premium.

Not-at-fault and one-car accidents

There’s no easy answer here, as this varies by state. You won’t see an increase in many states for a not-at-fault accident. But in other states, your company could increase your rate — depending on your state and insurance company. Insurance companies generally consider all one-car accidents to be “at fault” because no other driver is involved.