Car Insurance Rate

Your driving record. Your record plays a crucial role in determining premiums. If you’ve been involved in an accident that was determined to be your fault or if you have traffic convictions on your record, you may pay more for your insurance. That’s because statistics indicate such drivers generally have repeat accidents or violations within three years. For drivers with poor records who cannot find coverage, there are state-regulated insurance plans called “assigned risk pools” or “shared markets.” In these plans, the state assigns a company to provide coverage for a high-risk driver.
Your family members. Insurance premiums not only reflect your age, gender and driving record, but those of other licensed drivers in your household as well. A teenage son who drives your car or a spouse with a poor driving record is likely to increase your insurance rates.
The car you drive. Certain car models may be considered risky because they cost a lot to repair, are frequently involved in accidents or are popular with car thieves. Owning one of these cars may double your collision and comprehensive premiums. High-performance cars and sports cars, for example, usually cost more to insure. Keep this in mind when shopping for a car to prevent costly surprises when it comes time to insure it.
Marital status. Statistically, young married drivers have fewer accidents than young single drivers, so they generally pay lower premiums.
Where you live. Rates are regulated on a state-by-state basis, so rates in California and Rhode Island will differ. Rates also vary between locations within a state. That’s because the risks—of accidents, theft and vandalism—vary significantly from one community to another. For example, people in small towns generally have been found to have fewer auto accidents than people living in large cities, so they may pay less for insurance. Other variables include typical regional weather conditions and local auto repair prices.
Age. As a general rule, drivers under age 25 have more accidents than older drivers, so they pay more. Drivers between 50 and 65 years of age have low accident rates and are sometimes offered discounts. Past the age of 65, accidents seem to increase and rates generally begin to rise again. People over 70 may have trouble finding an insurer to accept them as a new customer, and when they do find coverage, it may be expensive.
Gender. A young man under age 25 generally pays more than a woman of the same age. This is because young men are involved in more accidents than young women and have more than three times as many fatal accidents.