What Major Factors Affect Auto Insurance Rates?

Life comes with a lot of expenses: schooling, groceries, utilities, hobbies, mortgage, childcare, etc. That said, why should you have to be paying more for auto insurance than necessary? Here are several major factors that may be affecting your auto insurance rates—for better or for worse.

Your Driver History

Your driving record can make a sizable impact on your car insurance rates. Basically, the more “high risk” your record is, the higher your insurance rates will be. Unfortunately, even relatively small violations, like a speeding ticket, can greatly impact your premium rates—even up to 40 percent. When applying for insurance coverage, your auto insurance company will probably look no further than the past three years, but they can potentially go back even further if they so choose to. Therefore, if you want to maintain a reasonable premium rate for your vehicle, it is highly recommended that you practice safe, low-risk driving. In the end, a good driving record will not only decrease your insurance rates, but it will make it much easier to apply for a claim.

The State You Live In

The state you live in can also affect your insurance premiums. For example, auto insurance rates are higher in no-fault states. A no-fault state is a state that requires all people involved to file a claim, regardless of whose fault the incident was. Everyone is responsible for their own person and property, no matter the cause of the accident. As a result, most no-fault states require that every insurance holder carry personal injury protection coverage (PIP). With this additional requirement to your insurance policy, your insurance rates will most likely increase. Examples of no-fault states include Florida, New York, Utah, Kentucky, etc. So if you have a poor driving record or don’t want to be forced into getting personal injury protection coverage, it is recommended that you think twice before living in a no-fault state.

Marriage Status

Did you know that your marriage status has an impact on your auto insurance rates? While no one should get married purely to decrease their auto insurance premiums, you should definitely take advantage of this small perk if you are already married or will soon be married. But what does marriage have to do with auto insurance? Research has shown that, when married, people tend to distribute the amount of driving between two people, often lowering personal risk, as well as decreasing the number of potential accidents and insurance claims. Therefore, while only a small effect, marriage could end up getting you a better deal on your auto insurance rates.


Where you live, your driver history, and your marriage status are only a few of the factors that may be affecting your auto insurance rates. Some other factors may include annual mileage, your credit score, or even your gender and age. No matter your status as a driver, do yourself a favor and lower your auto insurance premiums by maintaining a good driving record, as well as doing things like downsizing your car or even installing anti-theft devices. After all, every penny counts.


Read this next: How to Reduce the Cost of Owning a Luxury Vehicle


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