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» State of the car insurance market in 2022

Factors that affect car insurance rates
Written by Publishing Team

To determine rates, insurance companies anticipate the risks of making a claim based on factors in your driver profile. Each car insurance company has its own way of calculating rates, but they all take similar factors into account. This can include your age, location, gender, marital status, driving history, credit history, and vehicle.

Factors that affect car insurance rates


Teens pay the most for car insurance, followed by drivers in their early twenties. According to the National Highway Traffic Safety Administration, drivers between the ages of 15 and 20 were taken into account. 5.3% For all drivers but 7.8% of fatal accidents in 2019. Seniors are also finding higher car insurance rates on average due to more age group insurance claims.


Your location can affect what you pay for car insurance in many ways. Some states require more auto insurance coverage than others, which can increase the overall cost. Dense metro areas also experience higher accident rates, which increases rates. The rates of theft and vandalism in your area also affect auto insurance rates, as do natural disasters that cause widespread insurance claims.


Gender affects car insurance rates before less than 2% In the vast majority of states. women pay About 2% more From Men’s Auto Insurance in Arkansas and Georgia. On the other hand, men pay up to 7% more In a few states, including Louisiana, New Hampshire, Texas and Wyoming.

The following states do not allow auto insurers to use gender to calculate rates:

  • California
  • Hawaii
  • Massachusetts
  • Michigan
  • Montana
  • North Carolina
  • Pennsylvania

Social status

Married drivers tend to pay a little less than single drivers for car insurance – they save About $100 to $200 a year. Insurers have found that married couples make fewer claims on average and often insure multiple vehicles or family members on one policy. Car insurance rates are all about risk, and married drivers generally present less risk than unmarried drivers.

driving record

Another big factor in the risk equation is your driving record. Speeding tickets, accidents at fault, and serious convictions like a DUI make you a much more dangerous driver in the eyes of insurance companies. We estimate that a speeding ticket can increase your price by an amount 26% And the occurrence of a faulty accident can increase it 53%. DUI can increase the price by 84%.

Balance history

The Fair Isaac Corporation (FICO) created a credit-based insurance registration form in the 1990s. According to FICO, about 95% Auto insurers use credit-based insurance scores to calculate rates in states where it is permitted. The Federal Trade Commission found credit-based insurance results to accurately predict risk in a 2007 nationwide study.

The basic idea is that people who manage their credit obligations well take better care of their cars and have less risky driving habits. Therefore, if your scores are poor, auto insurance companies will charge you more to compensate for the higher risks (except in California, Hawaii, Massachusetts, Michigan, and Washington).


New cars cost more to insure because they are more expensive to repair after an accident. Insurance costs decrease as cars age. At some point, it’s not worth taking comprehensive or collision insurance to repair an old vehicle that has significantly depreciated in value. Cars with a high rate of theft, such as a Honda Accord or a Ford pickup, can cost more to insure.

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