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Auto Insurance Rates
You may feel that a car insurance company sets its premium rates by throwing darts at a dartboard or consulting a Ouija board, but that's not the case.
In fact, auto insurance companies rely on sound statistical data - compiled and tested over decades - to determine the fees it charges its individual customers. Insurance is all about risk, and few understand how to assess risk better that insurers.
If you doubt that, just count the number of insurance companies on the Fortune 1000 list.
Auto Insurance Rates: How They're Determined
A car insurance carrier considers many factors when evaluating risk, including:
- Age
- Gender
- Location
- Vehicle type
- Marital status
- Accident history
- Driving record
- Annual mileage
- Credit score
These factors help insurers form a composite look at their customers, and evaluate which ones are most likely to cost them money through higher-than-average claims rates. Those deemed most likely to file a claim from an action they caused get tagged with higher insurance premiums.
Like it or not, that's how the system works.
Who Gets the Cheapest Insurance Rates?
Generally speaking, insurers offer lower insurance quotes those who:
- Are female.
- Are older than 25.
- Are married.
- Drive an older, less expensive car.
- Drive a car with a good safety record.
- Live in a rural area.
- Have no chargeable accidents.
- Have no moving violations.
- Drive fewer than 10,000 miles per year.
- Have a high credit score.
Drivers with these characteristics have been shown to - on average - cause fewer accidents, report fewer claims, and cost insurers less money. That's why those who fit into most of these categories pay cheaper rates.
However, insurers don't weigh these factors equally. For instance, your driving record, age, and gender are more important than your marital status or credit score.
How to Lower Your Auto Insurance Rate
When it comes to lowering your premiums, you have a lot of options.
Not all of the following actions may be feasible or possible for you, but they can have a positive influence on the price you'll pay for insurance:
- Increase your deductibles.
- Lower your maximum coverage limits (be careful with this).
- Bundle your insurance, which means to have multiple polices (life, home, health) with your carrier.
- Take a safe driving course.
- Maintain a high grade point average.
- Have the newest safety features in your car.
- Drive a vehicle with a good safety record.
- Improve your driving record.
- Have fewer chargeable accidents (i.e., accidents you caused).
- Move to a more rural location.
- Drive fewer miles.
- Raise your credit score.
Your insurance agent or insurance company may offer other ideas on how to lower your auto insurance rates.
Compare Car Insurance Quotes
Even though car insurance companies tend to think alike, the prices they charge for coverage can vary tremendously.
That's why it's smart to compare your insurance rates with several carriers. You can quickly do this online; in fact, some sites permit you to view from numerous providers at once.
Just keep in mind, though, the company with the most attractive rates may not always be the best option for you.
In This Section
Other Topics in This Section
- Auto Insurance Deductible
Online Auto Insurance Deductible Info. Learn How A Car Insurance Deductible Works If You Are Involved In An Auto Accident With Damages To Be Covered By Your Insurance Company.
- Auto Insurance Limit
Look Online For Auto Insurance Limit Details. Car Insurance Limits Vary. Find Out More On The Limits Of Insurance Coverage And Minimum Requirements Set By The State.
- Auto Insurance Premium
Get Auto Insurance Premium Info Online. Learn How A Car Insurance Company Determines Insurance Premiums. Also Find Out More On Payment Options And The Benefits Of Paying In Full.
- Auto Insurance Quote
Online Auto Insurance Quote Info. Find Out Why Quotes And Insurance Premium Amounts Could Differ. Learn More On Comparing Car Insurance Quotes For A Competitive Insurance Rate.
- Motor Vehicle Report
Learn More About A Motor Vehicle Report. Find Out Why You Might Need One, Where To Obtain One And How It Compares To A Motor Vehicle Record, Driving Record And Driver History Report.
- Proof Of Financial Responsibility
Info On Auto Insurance And Proof Of Financial Responsibility. Some States That Don't Require Liability Insurance Require Drivers To Offer Proof They Can Pay In The Case Of A Car Accident.
- Auto Insurance Endorsement
Find Auto Insurance Endorsement Info. Our Online Guide Covers Details On Modifying A Car Insurance Policy And Insurance Coverage With Endorsements.
- Auto Insurance Exclusion
Get Auto Insurance Exclusion Details. Look Online For Info On Car Insurance Policy Exclusions And Cases Where An Insurance Company Makes Provisions To Eliminate Insurance Coverage.
- Auto Insurance Code
Guide To Auto Insurance Code Info. Get Online Details On Car Insurance Codes And How Auto Insurance Companies Determine Insurance Rates. Also Learn More On Insurance Premiums.
- Auto Insurance Discounts
Guide To Auto Insurance Discounts. Lower Your Car Insurance Rates With Discounts For Good Drivers, Safety Courses, Bundling Insurance Policies, Auto Insurance Renewal And More.
- Auto Insurance Glossary
Online Auto Insurance Glossary. Learn More On Car Insurance Terms. Our Glossary Of Insurance Terms Covers Types Of Auto Coverage, Insurance Policy Info And More.
- How To Obtain Proof Of Insurance
Learn How To Obtain Proof Of Insurance. Our Auto Insurance Guide Covers Buying A Car Insurance Policy And Getting Competitive Insurance Rates.
- How To Change Auto Insurance Providers
Tips On How To Change Auto Insurance Providers. Learn More On Working With Car Insurance Companies To Change Your Insurance Policy And Get Competitive Insurance Rates.
- Factors That Affect Insurance Rates
More On The Factors That Affect Car Insurance Rates. Learn How Gender, Age, Location, Auto Claims, Driving Record Points And More Affect Auto Insurance Rates.
- How To Cancel An Auto Insurance Policy
Steps On How To Cancel An Auto Insurance Policy. Look Online For Info On Car Insurance Policies, Insurance Rates And Handling An Auto Insurance Cancellation.
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Auto Insurance Center
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- Auto Insurance Minimum Requirements
- Buying Car Insurance Basics
- Buying Car Insurance For Teens
- Teen Guide To Car Insurance
- How To Get Car Insurance Coverage With A Learners Permit
- First Time Drivers Guide To Car Insurance
- How To Save Money On Teen Car Insurance
- Common Driving Mistakes Teens Make
- Safe Driving Tips For Teenage Drivers
- Safe Cars For Teen Drivers
- How To Add Teens To Your Auto Insurance Policy
- Tips for Car Insurance Policy Holders
- Types Of Auto Insurance Coverage
- Buying Car Insurance For Seniors
- Senior Guide To Car Insurance
- Extended Insurance Coverage Guide
- How To Get The Most Out Of Your Auto Insurance Coverage
- When To Buy Rental Car Insurance
- How To Cover Vandalism Through Car Insurance
- How To Cover Auto Theft Through Car Insurance
- How To Cover Windshield Repair Through Car Insurance
- How To Cover Accidents With Wildlife Through Car Insurance
- How To Cover Lost Wages Through Car Insurance
- How To Cover Medical Expenses Through Car Insurance
- How To Cover Pet Injuries Through Car Insurance
- How To Avoid Auto Insurance Non Renewal
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Commercial Auto Insurance
- Commercial Auto Insurance Requirements
- Commercial Auto Insurance State Requirements
- Federal Motor Carrier Insurance
- CDL Federal Requirements
- Commercial Insurance Filing
- State Commercial Insurance Filings
- Federal Truck Filings
- Intrastate Truck Filings
- Interstate Transportation Filings
- Certificate Of Insurance
- Uniform Carrier Registration Plan
- Types Of Commercial Auto Insurance
- Commercial Vehicle Insurance Discounts
- Multiple Policy Discount For Commercial Vehicles
- Paid In Full Commercial Vehicle Insurance Discount
- Commercial Business Experience Discount
- Commercial Auto Insurance Quotes
- Commercial Auto Insurance Articles
- Who Needs Commercial Auto Insurance
- Types Of Commercial Vehicles To Insure
- How To Save Money On Commercial Auto Insurance
- What You Need For A Commercial Insurance Quote
- Types Of Business Vehicle Insurance
- How To Compare Commercial Insurance Quotes
- How To Get The Most Out Of Your Commercial Auto Insurance Coverage
- Types Of Commercial Trailers To Insure
- Online Commercial Auto Insurance
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Motorcycle Insurance
- Motorcycle Insurance Minimum Requirements
- Types Of Motorcycle Coverage
- Accessory Coverage For Motorcycles
- Comprehensive Physical Damage Insurance For Motorcycles
- Collision Insurance For Motorcycles
- Bodily Injury Liability Insurance For Motorcycles
- Property Damage Liability Insurance For Motorcycles
- Medical Payments Insurance For Motorcycle Riders
- Personal Injury Protection Insurance For Motorcyclists
- Uninsured Motorist Coverage For Motorcyclists
- Underinsured Motorist Coverage For Motorcyclists
- Motorcycle Roadside Assistance
- Motorcycle Insurance Quotes
- Motorcycle Insurance Rates
- Motorcycle Insurance Discounts
- Online Motorcycle Insurance
- Motorcycle Insurance Articles
- Motocross Insurance
- Dirt Bike Insurance
- Moped Insurance
- Trike Insurance
- Scooter Insurance
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Auto Insurance Policy Basics
- Auto Insurance Deductible
- Auto Insurance Limit
- Auto Insurance Premium
- Auto Insurance Quote
- Auto Insurance Rates
- Motor Vehicle Report
- Proof Of Financial Responsibility
- Auto Insurance Endorsement
- Auto Insurance Exclusion
- Auto Insurance Rating
- Auto Insurance Code
- Auto Insurance Discounts
- Auto Insurance Glossary
- How To Obtain Proof Of Insurance
- How To Change Auto Insurance Providers
- Factors That Affect Insurance Rates
- How To Cancel An Auto Insurance Policy
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Insurance Claims
- When An Accident Happens
- Accident Loss
- Auto Accident Payment Recovery
- Total Loss
- Proof of Loss
- Subrogation
- Actual Cash Value
- Lost Wages
- Salvage Vehicles
- How To File An Accident Report With The Police
- Evaluating Personal Injury In Auto Accidents
- First Steps Following A Personal Injury Auto Accident
- When To Seek Medical Attention For Personal Injury
- Protection Against Auto Insurance Fraud
- How To Handle Staged Car Accidents
- Types of Insurance Claims
- Bodily Injury Claims
- Property Damage Claims
- Windshield Claims
- Third Party Insurance Claims
- About Car Insurance Claims
- How Car Insurance Claims Affect Your Auto Insurance Policy
- When To Cover Personal Injury With Auto Insurance
- How Much Personal Injury Protection To Buy
- Supplementing Health Insurance With Personal Injury Protection
- Pain And Suffering In Personal Injury Claims
- Statute Of Limitations And Personal Injury
- Negligence And Determining Legal Liability
- Auto Insurance Claim Settlements
- Auto Insurance Settlements Involving Personal Injury
- Proving Fault In An Auto Accident Personal Injury Case
- Compensation For Auto Accident Personal Injury Claims
- Tips For Settling A Motor Vehicle Accident Claim
- Factors That Affect Compensation In Personal Injury Claims
- Legal Representation For Insurance Claims
- When To Hire A Personal Injury Attorney
- When To Hire A Lawyer
- Personal Injury Attorney Fees
- How To Choose Personal Injury Lawyers
- Benefits of Hiring A Personal Injury Attorney
- What To Submit To A Personal Injury Attorney
- Processing Car Insurance Claims
- How Car Insurance Companies Handle Claims
- How Car Insurance Companies Investigate Accident Claims
- How To Document Auto Accident Damage
- When To Report An Auto Accident To The DMV
- Tips On Documenting Personal Injury Expenses
- Paying Medical Bills Before Receiving Personal Injury Compensation
- Wage Loss In Personal Injury Auto Accident Cases
- How To File A Loss Of Wages Auto Claim
- Stages Of A Personal Injury Case
- Filing Car Insurance Claims
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