Premiums Vary: How Do You Rate? Auto insurance premiums are based on criteria that reflect the policyholder’s perceived level of risk. Of course, the types and level of coverage you choose to purchase (over and above a state’s required minimum liability amounts) will influence premium costs. The following factors tend to influence the cost of auto insurance premiums. Driving record. If you have a clean driving record, you will generally pay less for insurance than will drivers who have had accidents or have been cited for traffic violations. Inexperienced drivers may have to pay more for coverage than will those who have been insured for a while. Credit history. Many insurers use credit-based insurance scores to analyze the likelihood that a person will file a claim. Age and gender. Both age and gender tend to influence the cost of premiums. As a group, women have fewer accidents thanmen, so they may be rewarded with lower premiums. Teenagers and young drivers under age 25 are often charged more for coverage. Number of miles driven. Spending a lot of time behind the wheel could increase the odds of being involved in an accident. Consumers who log more miles during the year will generally pay more for insurance, whereas low-mileage drivers may qualify for a discount. Where you live and/or park your car. Youmay pay more if you happen to live in a ZIP Code where claims are prevalent or in an area that is subject to higher medical or auto repair costs. Source: Insurance Information Institute, 2024
RkJQdWJsaXNoZXIy MTEyOTYzNw==