Learning Center


Factors Affecting Your Insurance Premium


One size does not fit all.  Many factors affect what your auto insurance premium is month to month.  Let’s look at each in detail.




Younger people have higher auto premiums.


Marital Status


Usually, married people go receive discounts on their premiums.




Violations increase your auto insurance premium and they are not usually dished out in an even fashion.  Some auto insurance companies may look the other way for the first traffic violation unless it is for a DUI.  Too many of these in a period may make it difficult for you to get any affordable auto insurance. 


Previous Claim History


People with previous claim history will have higher auto premiums.


Credit Score


It’s not that auto insurance companies are looking at your loan history as an indicator of how likely you are to make your car insurance payments.  What they have done is found strong correlations for people who have lower credit scores and people who end up costing insurance companies more money.


Where You Live or Work


Just like a loaf of bread can cost you more in some cities and cost you less in others, you will find that the cost of car insurance is also tied to where you live or work.


Automobile You Drive


Sports cars carry higher auto insurance premiums.  However, even within categories of automobiles, insurance companies will have a range on premiums based on how safe the car is compared to other cars in the same category.  Cars that are stolen more often carry higher premiums.  The more expensive the car, the more expensive the premium.


New or Used Car


For the same exact model car, driving a used version of the car should give you a lower premium since the overall cost to replace the car should be lower.



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