Important factors that affect car insurance rates

Ashlee is a dynamic business writer with a particular focus on finance. With an MBA and more than twelve years in the finance industry, Ashlee brings a practical and relatable perspective to the area of business write. She is passionate about personal finance and empowering others with the cognition to succeed. When she isn ’ thyroxine write, Ashlee manages a team of provide chain professionals at a university and enjoys spending free time with her spouse and chase on their farm in Kentucky. Our mission is to help you make educated policy decisions with confidence. We have an advertise relationship with some of the offers included on this foliate. however, this doesn ’ metric ton influence our column judgment or recommendations. The rankings and listings of our reviews, tools and all other message are based on objective analysis, and we fully own our opinions. There are many factors that affect your car policy rates, including in most states your historic period, sex, where you live, your credit and driving history and the character of car you drive, among others. In summation, the types of cable car indemnity you buy and car indemnity discounts you qualify for besides influence how much you pay.

Some of these variables, including your location, your senesce, your credit and driving history, can have a dramatic impact on what you pay. other factors, such as if you ’ rhenium married, or male or female, tip the scales less. placid, they all add up to what it costs for you to protect yourself with an car policy policy. We ’ ll explain the key factors that affect your car indemnity rates, vitamin a well as crack technical insight on how they influence costs. Key Highlights

  • There are many factors that affect car insurance rates, including your age, gender, where you live, credit score and the type of car you drive.
  • It is possible to lower costs by combining policies with your spouse. Married people on average pay 4% less than single drivers.
  • Insurance companies consider how much you drive before they set your rates.
  • Insurance rates can differ by thousands or hundreds of dollars among insurers. Make sure you compare rates before you buy a policy.

Why is car insurance so expensive?

You might wonder why car indemnity rates can be so high tied with no accidents and an otherwise clean drive record. Car indemnity rates, overall, are trending upward due to respective reasons. Key among them :

  • Lower gas prices and a recovering economy means more people are driving more miles. With more drivers on the road, accident rates increase. That means more claims, which hike carriers’ costs, which in turn is passed on to policyholders. Consider this: Since 2012, the number of collision claims increased by over 9%. Between 2011 and 2016, the cost of collision claims rose by 30%, according to a September 2018 report by the Highway Loss Data Institute.
  • The cost to repair newer cars is getting more expensive, as even standard trim models come equipped with high-tech safety features that are pricey to fix.

But there are besides variable related to your driver profile that can increase your rates, compared to what others pay without those circumstances. Factors that can significantly increase your rates include, but aren ’ thymine limited to the stick to, which we explain in more detail below :

  • Your age — Drivers under age 24 pay much higher rates due to their inexperience and higher incidents of accidents.
  • Your driving record – If you have traffic violations, such as speeding tickets, or a more serious conviction, such as DUI, you will certainly pay more than those who have clean records, and accidents in most cases will also mean you have higher car insurance rates than those who don’t.
  • Your credit history – Drivers with bad credit pay significantly more than those with good credit, so this is another factor that can make your costs much higher than the typical driver.
  • Your location – Even with a clean driving record, if you live in an area where there is a high rate of accidents, thefts or vandalism, or one prone to severe weather damage, you will typically pay more compared to drivers who don’t.

What factors influence the rate someone pays for their car insurance?

clearly, there are many variables that work together to shape what you pay for coverage. When you decide to shop for a fresh policy, you should be aware of the key factors that involve car indemnity rates. here we explain key factors car indemnity companies asses when setting your rates .

How does your address affect car insurance rates?

Where you live ( and park your car ) will have a direct impact on your indemnity agio. Of all the factors that affect car indemnity rates, location is head among them. Insurers credibly know more about your neighborhood than you do. They study crime rates, region densities, the number and austereness of claims made annually and even the weather patterns to assess the risk you present. Find out how much you can expect to pay by entering your ZIP code into the average car policy rates tool below. You ‘ll see the highest and lowest rate for your vicinity fielded from up to six insurers, which shows how a lot you can save by comparison shopping, american samoa well as the average annual pace for six old age groups and three coverage levels.

California

Car Insurance Rates by ZIP Code

Enter ZIP for average rate. Then enter Age, Gender and Coverage Level for customized rate.

carZIP:

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AGE:

Male

Female

Male

coverage TYPEStool-tip State Minimum Liability Liability Only – $ 50K/ $ 100K/ $ 50K Full Coverage – $ 100K/ $ 300K/ $ 100K
*Please embark valid nothing

State Minimum:

Required liability coverage to drive legally in your state; some states mandate additional coverage, such as personal injury protection, uninsured motorist, underinsured motorist.

Liability Only 50/100/50:

$50,000 per person/$100,000 maximum per accident for bodily injury; $50,000 for property damage. Liability pays for injuries/damage you cause others.

Full Coverage 100/300/100:

$100,000 per person/$300,000 maximum per accident for bodily injury; $100,000 for property damage; comprehensive and collision coverage with $500 deductible. Liability pays for injuries/damage you cause others. Comprehensive and collision pay for damage to your car.

94404

Foster City

For

30 

Year Old

Male 

( type :

Liability – Minimum

) modal monthly premium

$46

highest rate
Highest rate

$56

/mo .lowest rate
Lowest rate

$26

/mo. Compare personalized quotes from up to 20 companies in

California

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MOST & LEAST EXPENSIVE ZIP CODES in

California

MOST EXPENSIVE PER MONTH
91205 – Glendale : $91
90212 – Beverly Hills : $91
90038 – Los Angeles : $91
91203 – Glendale : $90
LEAST EXPENSIVE PER MONTH
96107 – Coleville : $33
96093 – Weaverville : $34
93513 – adult pine : $34
96027 – bunsen burner : $34

methodology How we researched it ? CarInsurance.com commissioned Quadrant Information Services to provide a report of average car insurance rates for a 2017 Honda Accord for about every zip code code in the United States. We calculated rates using data for up to six big carriers. Averages for the default leave are based monthly policy for a male driver, old age 30, for state minimal required liability coverage. Averages for custom-make rates are based on drivers ’ ages and sex for the succeed coverage levels : state minimum indebtedness, liability of 50/100/50 and 100/300/100 with $ 500 deductible on comprehensive and collision. These conjectural drivers have clean records and good credit. average rates are for comparative purposes. Your own pace will depend on your personal factors and vehicle .

The types of car insurance you buy and how much coverage you buy

The character and sum of cable car insurance you buy will play a function in how much you pay for a policy. obviously, a wide coverage policy that includes the optional coverages of comprehensive examination and collision will cost more than the come required to legally drive in your department of state, referred to as state of matter minimum liability indemnity. hush, in some states even the mandated minimal coverage includes uninsured motorist coverage or personal injury protection indemnity, which can make it more costly than a state where those aren ’ thyroxine required. Before you fire up your calculator and start accumulate quotes, you should determine your ideal policy limits. Minimum indebtedness insurance limits vary by department of state, but normally are not closely enough to amply protect you. Gusner recommends carrying 100/300/100 in liability coverage, which translates into $ 100,000 per person and $ 300,000 per accident for injuries to others in accidents you cause, and $ 100,000 to repair price you do to other vehicles and property. If you have few assets, do n’t own a home plate and drive an previous cable car that ‘s not deserving a lot, you can probably get by with liability limits of 50/100/50. You will besides need collision to pay for damage to your cable car in accidents you cause, and comprehensive indemnity if you want your car repaired after damaged from fire, vandalism, striking an animal or severe weather events, like hail storms. Comprehensive insurance besides reimburses you for the fomite ‘s value, minus your deductible, if the car is stolen. Let ‘s not forget the deductible. “ While $ 500 is a park choice, you can save money if you go with a higher deductible, such as $ 1,000, ” advises Gusner. The deductible applies to collision and comprehensive claims. To give you an theme of what you can expect to pay, you can see details from our guide on how estimate car policy costs, and for now, additionally, here ‘s a comparison of the average annually price of the following coverage levels, by state of matter :

  • State minimum liability
  • 50/100/50 liability
  • 100/300/100 liability
  • State minimum liability with comprehensive and collision, with $500 deductible
  • 50/100/50 liability, with $500 deductible on comprehensive and collision
  • 100/300/100 with $500 and $1,000 deductible on comprehensive and collision
Average Yearly Cost of the Coverage Levels by State
State

State Minimum – Liability Only

Liability Only – 50/100/50

Liability Only – 100/300/100

Full Coverage – State Minimum $500 Deductible

Full Coverage – 50/100/50 $500 Deductible

Full Coverage – 100/300/100 $500 Deductible

Full Coverage – 100/300/100 $1,000 Deductible

Alaska $380 $385 $432 $1,320 $1,324 $1,428 $1,264
Alabama $483 $535 $585 $1,353 $1,434 $1,539 $1,401
Arkansas $522 $569 $641 $1,555 $1,588 $1,689 $1,526
Arizona $516 $621 $686 $1,314 $1,478 $1,604 $1,453
California $588 $723 $783 $1,903 $2,084 $2,185 $1,929
Colorado $549 $623 $699 $1,470 $1,606 $1,763 $1,595
Connecticut $968 $1,080 $1,253 $1,872 $1,979 $2,155 $2,021
DC $690 $772 $846 $1,565 $1,646 $1,739 $1,539
Delaware $832 $936 $1,016 $1,536 $1,659 $1,775 $1,620
Florida $1,106 $1,430 $1,618 $1,957 $2,431 $2,715 $2,575
Georgia $624 $830 $933 $1,553 $1,659 $1,799 $1,655
Hawaii $420 $472 $518 $1,137 $1,215 $1,287 $1,116
Iowa $348 $384 $410 $1,077 $1,118 $1,146 $992
Idaho $419 $468 $523 $1,058 $1,118 $1,194 $1,082
Illinois $481 $548 $616 $1,150 $1,223 $1,292 $1,165
Indiana $458 $502 $551 $1,203 $1,254 $1,314 $1,150
Kansas $452 $490 $539 $1,434 $1,452 $1,484 $1,274
Kentucky $534 $594 $671 $1,655 $1,727 $1,845 $1,680
Louisiana $752 $976 $1,178 $1,930 $2,294 $2,644 $2,486
Massachusetts $570 $711 $781 $1,297 $1,438 $1,507 $1,280
Maryland $785 $849 $919 $1,518 $1,578 $1,648 $1,487
Maine $375 $379 $426 $906 $910 $958 $859
Michigan $1,527 $1,589 $1,642 $2,755 $2,837 $2,909 $2,664
Minnesota $593 $640 $671 $1,283 $1,328 $1,347 $1,198
Missouri $442 $508 $558 $1,259 $1,339 $1,403 $1,254
Mississippi $470 $539 $597 $1,352 $1,456 $1,569 $1,436
Montana $378 $442 $494 $1,342 $1,455 $1,562 $1,382
North Carolina $506 $555 $631 $1,054 $1,104 $1,181 $1,108
North Dakota $358 $388 $421 $1,180 $1,209 $1,243 $1,070
Nebraska $404 $447 $499 $1,223 $1,260 $1,301 $1,121
New Hampshire $526 $572 $637 $1,134 $1,172 $1,236 $1,124
New Jersey $840 $1,003 $1,108 $1,453 $1,617 $1,722 $1,603
New Mexico $473 $523 $570 $1,294 $1,379 $1,488 $1,357
Nevada $582 $738 $909 $1,539 $1,783 $2,077 $1,943
New York $805 $886 $990 $1,735 $1,816 $1,920 $1,729
Ohio $397 $417 $450 $982 $1,002 $1,051 $925
Oklahoma $481 $527 $607 $1,619 $1,723 $1,894 $1,684
Oregon $817 $912 $1,016 $1,401 $1,494 $1,595 $1,484
Pennsylvania $505 $598 $723 $1,385 $1,500 $1,600 $1,439
Rhode Island $808 $1,010 $1,164 $1,743 $1,935 $2,090 $1,915
South Carolina $517 $581 $655 $1,559 $1,647 $1,767 $1,561
South Dakota $297 $333 $377 $1,273 $1,309 $1,337 $1,103
Tennessee $465 $508 $557 $1,213 $1,266 $1,337 $1,203
Texas $601 $644 $703 $1,589 $1,655 $1,761 $1,604
Utah $543 $585 $655 $1,177 $1,228 $1,332 $1,220
Virginia $379 $420 $475 $938 $972 $1,026 $916
Vermont $361 $397 $453 $1,050 $1,082 $1,137 $1,015
Washington $489 $534 $581 $1,194 $1,260 $1,354 $1,255
Wisconsin $385 $440 $497 $1,119 $1,175 $1,227 $1,086
West Virginia $568 $650 $757 $1,277 $1,345 $1,452 $1,284
Wyoming $328 $356 $385 $1,365 $1,399 $1,439 $1,187

The table shows the average annual rate for a 2017 Honda Accord LX for a driver age 35 with a clean record and dependable citation, culled from 10 ZIP codes in the state for up to six major carrieres. Data was provided for CarInsurance.com by Quadrant Information Services. New Hampshire doesn ’ t command drivers to have cable car policy, but most drivers do, and we ’ ve listed what is mandated if you choose to carry coverage .

How does credit score affect car insurance?

closely all policy companies use your recognition information as a gene to determine rates, so a low credit-based indemnity score will raise your agio ( unless you live in California, Hawaii or Massachusetts, which do n’t allow the practice ). It all goes bet on to risk. Studies show that people with bad credit tend to file more and higher claims. In states where a credit-based indemnity score is allowed to influence rates, the shock of bad credit can importantly hike your policy price. CarInsurance.com commissioned Quadrant Information Services to compare full-coverage rates for drivers with good and poor credit. The research shows that, on average, drivers with bad credit pay 71 percent more than drivers with good credit, or about $1,000 a year .

How age affects car insurance rates

Your age will impact your premium, particularly if you are young or in your dusky years. Statistics from the Insurance Institute for Highway Safety ( IIHS ) show that the fatal clang rate for adolescent drivers is three times those of drivers over the historic period of 20. On the early end of the spectrum, older drivers tend to be involved in more accidents. CDC stats show that black doss rates increase around 75 and rocket at long time 80. A CarInsurance.com datum analysis of average car policy rates by senesce shows that, in general, rates are cheapest for drivers in their 40s, 50s and 60s, and then increase again a bite at age 70 .

Gender and car insurance

In most states, car policy companies take your sex into bill when calculating your rates. therefore, while gender does influence how much you pay, it typically doesn ’ thymine resultant role in significantly different rates for men and women, after the old age of 24. And, recently some states have banned the use of gender in setting costs for car policy. California in 2019 joined five other states that have either banned the use of sex in pricing car policy or that require unisex price, says CarInsurance.com Senior Consumer Analyst Penny Gusner. Insurers have until July to submit gender-neutral car denounce plans to the submit ‘s Insurance Department for review. Using gender is reasonably controversial as policy companies maintain it ’ s a fair practice based on their actuarial research, while consumer advocates argue it is discriminatory. “ The California ban comes on the heels of another law that went into effect there this year, which allows residents to choose ‘ nonbinary ’ quite than ‘ male ’ or ‘ female ’ on driver licenses. I wouldn ’ t be surprised if other states begin to consider prohibiting the use of sex when setting car policy rates as more people and state legislators are challenging the impression of using barely ‘ male ’ and ‘ female ’ on identity forms, ” says Gusner. Novice female drivers will generally be impacted the most, by paying more, if gender is taken out of the rate calculation. Female drivers from age 16 to 24 pay, on average, around $500 less (15%) a year for car indemnity compared to their male counterparts, according to CarInsurance.com ’ second rate psychoanalysis. Our rate data show from old age 25 to 65 rates for males and females are within 5 % of each other, with rates for males a tad cheap from long time 45 to 75. After age 75, females start again to pay less, but only approximately 7 %, or $ 100, per annum. The use of sex in setting car rates highlights how much state indemnity laws can differ. Another exemplar : there are three states ( California, Hawaii and Massachusetts ) that prevent credit history from being used to set cable car indemnity rates. There are besides varying laws and rules on how rates, and rate hikes, are regulated. early states that ban function of sex in determining cable car indemnity rates : Hawaii, Massachusetts, Montana, North Carolina and Pennsylvania. In Michigan the consumption of gender in setting pace is technically prohibited but reports suggest that a loophole in the law allows the drill .

Marital Status: Do married or single drivers pay more for insurance?

Statistics show that married drivers are involved in fewer accidents and are issued fewer tickets than individual people. In some cases, insurers will even drop the rates of drivers under 25 if they tie the ravel. Combining policies with your raw spouse can besides lower your costs even further. On average, married drivers pay an average of about 4% less than single drivers, based on a rate analysis by CarInsurance.com ’ s team of industry experts. But in can be much more than that, up to 15 %, depending on your insurance company ’ second rule for assessing hazard .

Homeowner status

Like being married, homeowners tend to be safe drivers, which means they cost indemnity companies less money. then, policy companies consider whether or not you own a home when setting rates. typically, homeowners pay 3 % less than those who don ’ metric ton own a house. But if you buy your home insurance from the same company as your car insurance, called bundle, you can net a big dismiss, besides .

Does the type of car you drive affect car insurance rates?

The type of car you drive will have an impact on your premium quotation. For your fomite model, they look at :

  • Purchase price
  • Theft rate
  • Cost of repairs
  • Accident rate
  • Safety tests

Insurers will take into account the car model ‘s claims read. As a solution, for exemplify, if a draw of younger drivers who have accidents drive the like model as you, you may pay a higher rate. Or, if you drive a minivan, typically driven by cautious parents who are middle-aged or older, therefore have fewer accidents, you may pay a lower pace. If you ’ ra buy a car, and want to know which models have insurance losses that are better or worse than average, you can inquiry indemnity losses by take and mannequin, provided by the Insurance Institute for Highway Safety. If you want to see which vehicles earned eminent base hit ratings, read our guide to cars with the best guard ratings that are cheapest to insure. car policy companies besides take into explanation the types of safety features your cable car has. so, for case, if it has airbags and brake stabilization, it may mean you pay less for indemnity. however, cars with high-tech safety features, such as collision-warning systems, may add to the price of indemnity if the cost to repair or replace the feature is expensive. For many insurers, there is n’t enough proof the add features are worth a deduction .

Vehicle use

How you use your car will impact your premium. If you use your vehicle for commercial purposes, even something ampere child as a half-time pizza delivery subcontract, you need to disclose this. failure to do so could result in a deny claim if you are in an accident while on a manner of speaking. You ’ ll besides typically pay more for coverage that includes business use. And, if you work nights, and frequently drive after midnight, expect your rate to be higher than those who don ’ metric ton .

Miles driven

It makes smell that the more you drive, the higher your prospect is of having an accident. That ’ s why indemnity companies take how much you drive into bill when setting rates. If you have a long commute or otherwise log a distribute of miles, you will typically pay more because you are considered to more of risk compared to others who don ’ thymine .

Licensed drivers

Drivers you live with that may drive your cable car are besides factor carriers consider when assessing your risk, and consequently, your rates. list all licensed drivers living in your family, regardless of whether they drive your vehicle much. Omitting a driver could result in a traverse claim or a cancellation if the unlisted driver is involved in an accident. In terms of how it affects your rates, this means, for example, if your spouse has a safe driving record, your rates won ’ metric ton be affected much, but if your spouse has holocene tickets or accidents, it could increase your coverage costs. additionally, adding your adolescent driver to your policy will always hike your rates. vitamin a soon as your child has a valid driver ‘s license, add the adolescent to your policy. Expect to pay, on average, about 143 % more to add a sixteen-year-old to your policy. While the cost to add a adolescent to your policy surely stings, it ‘s worth it to be sure that you ‘re financially protected should your adolescent driver have an accident. In general, the two exceptions to the “ list all licensed drivers in your family ” rule are an adult child who lives with you but has his own fomite and a parent who lives with you but has his or her own cable car .

Driving record

Your drive record indicates how bad you are as a driver. A drive phonograph record packed with tickets or accidents is a red flag for any insurance company. Insurers will check your drive record when you apply for coverage, and again at refilling clock time. This is why it ‘s wise to know how to check your driver record, and why it ‘s thus authoritative to fix any errors. If you have holocene moving violations, such as speeding tickets, expect those violations to raise your rates for three to five years. How much policy goes up for speeding tickets depends on how fast you ‘re driving, your submit laws and your insurance company, among early factors, but typically your rates will increase by approximately 20 % to 30 %, or about $ 300 to $ 450, annually. While it may be tempting to fudge the facts on your lotion, that is a bad theme. “ If you give incorrect information on the quoting form, and the policy company finds the erroneousness, it will recalculate your bounty or may decide to rescind its policy offer, ” warns Gusner .

Accidents and claims history

Accidents and tickets are n’t the merely things that will ding your insurance rates ; all claims can potentially have an effect on your rates. While at-fault claims will result in a surcharge ( higher rates ) and comprehensive claims broadly will not, the number of claims you make matters. precisely how much your indemnity rates increase after an accident besides depends on your insurance company and other factors. But, CarInsurance.com data research shows a holocene accident claim will hike rates by about 30 %, or $ 450 a class. If you have made a number of claims, of any kind, on your policy in a short period of time, such as three claims in three years, expect your car insurance rate quotes to be higher. A large number of claims will peg you as a higher gamble and raise your premiums for at least two to three years .

Years of coverage, or prior insurance history

proof of policy verification, which shows that you had insurance coverage before applying for a newly policy, is something every insurance company will ask you to provide. In most states driving without car insurance is illegal so a relapse, or a number of gaps in your coverage, will be a business. That means you ’ ll typically pay more when you do reinstate your coverage. A relapse in coverage for a week up to 30 days will hike your car indemnity rate by an average of 9 %, or about $ 130, a year. A 60-day lapse gets you a 13 % increase, about $ 190 more a year. But in some states a 60-day backsliding can cost adenine much as 20 % to 48 % more .

Get cheaper car insurance by comparing quotes

While the variables policy companies consider when pricing policies are reasonably standard across the industry, each insurance company uses its own rule for assessing risk and setting rates based on these variables. That ‘s why the price of a policy can differ by hundreds or thousands of dollars among carriers — and why it ’ sulfur wise to compare policy companies.

Comparing car indemnity quotes to see which car insurance ship’s company is the cheapest will save you the most. For example, CarInsurance.com ’ second pace analysis found the trace electric potential savings, or the difference between the highest and lowest price, for the lapp policy :

  • State minimum liability – average savings of 153%, or $497
  • Full coverage – average savings of 178%, or $1,647

The datum analysis indicates that many drivers who do n’t shop their policies could be paying besides much for their cable car indemnity .

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