Some of what determines your car insurance price is fixed, like where you live. Much of it isn't. This guide goes through ten common factors and, for each one, what you can realistically do about it. For a broader explanation of how insurers combine these factors, see How Are Car Insurance Rates Calculated?
Which factors insurers may use, and how much weight they carry, varies by state and by insurer. Treat this as a general guide rather than a promise about any particular company's pricing.
1. Where you live
Insurers price by area because accident rates, theft, weather and the cost of repairs and medical care differ from place to place.
What you can do: Make sure your policy lists the correct garaging address, and tell your insurer if you move. If you're choosing between areas, it can be worth getting quotes for each before you decide.
2. Your driving record
Tickets and at-fault accidents usually raise premiums for several years. Serious violations can have a larger and longer effect.
What you can do: Drive in a way that keeps your record clean, since its effect builds over time. Some insurers and states offer discounts for completing an approved defensive driving course; ask whether one applies to you.
3. Age and driving experience
Less experienced drivers generally pay more. Rates often improve as you build a longer record.
What you can do: For young drivers, ask about good-student and driver-training discounts. Families can compare the cost of adding a young driver to an existing policy against a separate policy.
4. The car you drive
A vehicle's value, repair costs, safety features and theft rates all affect what it costs to insure, especially for collision and comprehensive coverage.
What you can do: Before buying, get quotes for the specific models you're considering. Make sure your insurer knows about safety and anti-theft features, which can qualify for discounts with some companies.
5. Coverage types and limits
More coverage and higher limits cost more. Coverage that only meets your state's minimum is the cheapest option, but it may leave you personally responsible for costs above those limits.
What you can do: Choose limits based on what you could lose in a serious accident, not just the price. On an older car with a low value, it may make sense to review whether collision and comprehensive are still worth what they cost. Our Liability vs Full Coverage guide covers that decision.
6. Your deductible
A higher deductible usually means a lower premium, because you agree to pay more of each collision or comprehensive claim yourself.
What you can do: Pick the highest deductible you could comfortably pay on short notice. If you lease or finance, check your contract first, since lenders often set a maximum. See How Does an Auto Insurance Deductible Work?
7. Your claims history
Prior claims, particularly at-fault claims, can increase your premium. Insurers commonly review claims history reports when you apply.
What you can do: For very small losses, compare the repair cost with your deductible and the possible effect on your rate before filing. You can also request your own claims history report to make sure it's accurate.
8. How much and how you drive
Annual mileage and how the car is used, such as commuting or business use, affect your exposure to accidents.
What you can do: Report your mileage accurately, and update your insurer if it drops, for example after a job change. If you drive carefully and not very much, ask whether a usage-based or low-mileage program is available, and read how it treats your data before you enroll.
9. Credit-based insurance score, where allowed
Many states allow insurers to use a credit-based insurance score. A few, including California, Hawaii and Massachusetts, prohibit or significantly limit it for auto insurance.
What you can do: Where it's allowed, the usual habits that support credit, such as paying bills on time and keeping balances manageable, may help over time. Check your credit reports for errors as well.
10. Insurance history and discounts
A gap in coverage can raise your price with some insurers, while discounts such as bundling, paying in full or going paperless can lower it.
What you can do: Avoid letting coverage lapse, even briefly when switching insurers. When you shop, ask each insurer which discounts you qualify for, and compare final prices for the same coverage rather than headline rates.
Frequently asked questions
Which factor has the biggest effect on my car insurance cost?
It depends on your situation and the insurer. Location, driving record, age and the coverage you choose are often among the most influential, but each insurer weighs factors differently.
Will one speeding ticket raise my rates?
It can, though the effect varies. Some insurers apply a smaller increase for a single minor violation, and its effect typically fades over a few years. Others may not change your rate at all for a first minor ticket.
Can I lower my premium without reducing coverage?
Often, yes. Common options include comparing quotes from several insurers for the same coverage, asking about discounts, raising your deductible if you can afford it, and keeping your mileage and vehicle details up to date.
