The Top 15 Factors that Determine Your Auto Insurance Rates
Last Updated on December 11, 2025
Auto insurance companies use dozens of data points to decide what you pay. Some are major—like your driving record and where you live—while others, like certain discounts or memberships, play a smaller supporting role.
Understanding these factors helps you focus on what you can actually control. While you can’t change your age or past accidents, you can adjust your coverage, vehicle choice, mileage, and more to keep your premiums in check.
Below are the top 15 factors that determine your auto insurance rates and how each one can raise or lower what you pay.
Key Takeaways
- Auto insurers use many factors to set your rate, but the biggest drivers tend to be your driving record, age, location, vehicle, mileage, and coverage choices.
- You can’t control some factors (like your age or local crash rates), but you can influence others by driving safely, lowering your mileage, choosing a safer car, and adjusting your limits and deductibles.
- In many states, credit score, gender, and marital status still affect premiums, but several states now restrict how insurers can use these personal characteristics.
- Because each company weighs these 15 factors differently, comparing quotes from multiple insurers is one of the most effective ways to find a lower rate for the same level of coverage.
Fifteen Factors That Impact Your Premiums
1. Driving Record
Your driving record is one of the most important rating factors. If you have multiple at-fault accidents, speeding tickets, or serious violations in recent years, you’ll almost always pay more than someone with a clean driving record.
Insurers typically look back about five to seven years for most violations and accidents, though major offenses like DUI convictions may impact you for longer. Fewer tickets and no recent at-fault crashes = lower risk in the eyes of your insurer—and lower premiums over time.
2. Gender (Where Allowed)
Historically, insurers have used gender because it’s correlated with risk. Young males, for example, are statistically more likely to cause serious accidents than young females. As drivers age, the gap usually narrows—and in some age brackets, male and female rates can look similar.
However, some states now view gender-based pricing as unfair and have banned it. In those states, companies must rely more heavily on other factors, like driving history and mileage, instead of gender.
If you live in a state that still allows gender rating, young men typically pay more than young women, while the difference tends to shrink as you get older.
3. Age
Your age is another major factor. Insurers know from decades of claims data that:
- Teen drivers are the highest-risk, and pay the highest premiums.
- Drivers in their late 20s through their 50s and 60s typically enjoy the lowest rates, assuming a good record.
- Rates can rise again in your 80s and beyond, when crash severity and injury risk may increase.
Statistics show that younger drivers are more likely to cause accidents, which is why age is such a powerful rating factor—especially early in your driving life.
4. Marital Status
Married drivers tend to file fewer claims than single, divorced, or widowed drivers. Insurers see marriage as a sign of stability, which can translate to safer driving habits.
Because of this, married couples often receive a small discount—commonly in the range of 5% to 15% compared to similarly situated single drivers. This effect tends to be more noticeable for drivers in their 20s and less dramatic later in life.
5. ZIP Code & Garaging Location
The ZIP code where you live (and specifically where you park your car at night) has a big impact on premiums. That’s because insurers price based on local risk factors such as:
- Accident frequency in your area
- Rates of theft, vandalism, and break-ins
- Population density and traffic congestion
- Weather patterns and storm-related claims
Urban ZIP codes with more traffic and crime typically see higher premiums than quiet rural areas, even within the same state.
6. Vehicle Safety Rating
Some vehicles protect their occupants better than others in a crash. Cars and SUVs with strong safety ratings and advanced safety tech can lower injury severity and reduce the chance of costly medical claims.
Insurers look at crash-test data, real-world injury statistics, and features like automatic emergency braking, lane-departure warnings, and multiple airbags. Safer vehicles may qualify for discounts and can be cheaper to insure on the injury side of your policy.
7. Vehicle Size & Type
Vehicle size and type affect both how much damage your car might cause and how expensive it is to repair. Larger vehicles—like full-size SUVs and trucks—can cause more property damage in a crash, but they may also protect their occupants better than small cars.
Sports cars and high-performance vehicles tend to have higher premiums because they’re associated with faster driving, more severe crashes, and higher repair costs. On the other hand, modest sedans and non-luxury SUVs often fall on the cheaper side to insure.
8. Age & Value of the Vehicle
Older vehicles usually have lower market values than newer vehicles. When repair costs get close to or exceed the vehicle’s value, insurers will declare a total loss. On newer vehicles, the total-loss thresholds are higher because the car is worth more.
As a result, collision and comprehensive coverage tend to be more expensive on newer, higher-value vehicles and cheaper on older ones. Many drivers eventually drop full coverage once a car’s value gets low enough that it’s not worth the extra premium.
9. Likelihood of Vehicle Theft
Some vehicles are stolen far more often than others. Certain models appear year after year on “most stolen” lists, either because they’re easy to steal, their parts are in high demand, or they’re attractive targets for thieves.
If your car is frequently targeted, your comprehensive coverage may cost more because insurers might have to pay out for a total loss. To protect against theft, you generally need comprehensive coverage on your policy.
10. Driving Activity & Annual Mileage
How much and how often you drive directly affects your chances of being in a crash. That’s why most insurers ask about your annual mileage. The average U.S. driver logs somewhere around 8,000 to 12,000 miles per year:
- If you drive significantly less, you may qualify for a low-mileage discount.
- If you drive much more—say, long daily highway commutes—your rates may be higher due to increased exposure.
Today, many companies also offer usage-based insurance and telematics programs that track how, when, and how far you drive. Safe drivers who avoid hard braking, speeding, and late-night driving can earn personalized discounts, while riskier driving can mean smaller savings—or even surcharges in some programs.
11. Credit Score (Where Allowed)
In most states, your credit history or credit score can affect car insurance rates. Insurers use something called a credit-based insurance score, which is similar to your regular credit score but weighted slightly differently.
Studies show that drivers with better credit tend to file fewer claims and cost insurers less overall, which is why good credit can lead to lower premiums—sometimes dramatically lower. Conversely, drivers with poor credit often pay significantly more for the same coverage.
However, not every state allows this. A small number of states prohibit or tightly restrict the use of credit in auto insurance pricing. In those states, insurers must rely more on other factors, like driving record, age, and mileage.
12. Profession & Affiliations
Your profession can sometimes influence your rates—mostly in the form of small discounts. Certain jobs are associated with more careful driving or lower average mileage, so some insurers offer modest savings to:
If you’re a member of a professional association, union, alumni group, or similar organization, you may also be eligible for affinity discounts with certain insurers. These savings are usually small but can stack with other discounts.
13. Vehicle Use (Commute, Business & Rideshare)
Insurers care not just how much you drive, but why you drive. Do you use your vehicle for business or pleasure? Do you commute to work every day, or mainly use your car on weekends?
Some examples:
- If you drive long distances every day for work, your “commute” rating could make your premium higher than a low-mileage, “pleasure-use” driver.
- If you use your vehicle to drive for Uber or Lyft, you may need special rideshare coverage or a rideshare-friendly policy.
- If you regularly use your car for deliveries, sales calls, or other work errands, you may need to buy commercial auto insurance or add a business-use endorsement.
Using a personal policy for business or rideshare driving without proper endorsements can leave you underinsured or even denied coverage after a claim, so it’s crucial to be honest about how you use your car.
14. Coverage Limits & Deductibles
Your coverage choices have a direct, immediate impact on your premium. Some drivers buy only the minimum liability limits required by their state. Others opt for higher limits, full coverage, and extra protection like roadside assistance or rental reimbursement.
Two key levers here are:
- Coverage level: Higher liability limits or full coverage cost more, but also protect more of your assets if you cause a serious accident.
- Deductibles: Your deductible is what you pay out of pocket on a claim. Lower deductibles cost more each month; higher deductibles can significantly reduce your premium but increase your out-of-pocket cost after a loss.
Customizing these settings is one of the fastest ways to adjust your bill—just be sure you’re comfortable with the financial risk you’re taking on if you file a claim.
15. Years of Driving Experience
Insurers look not only at your age but also at how long you’ve been licensed and insured. A 45-year-old who just got their first license and has no insurance history may pay more than a 30-year-old with a decade of safe driving.
The longer you’ve been driving without serious accidents or violations, the more companies can see that you’re a low-risk driver. Over time, that experience can translate into significantly lower premiums.
FAQs on What Determines Your Auto Insurance Rates
Final Word on the Factors That Determine Your Auto Insurance Rates
Some rating factors—like age, gender laws, and your ZIP code—are outside your control. Others—like your driving habits, coverage choices, vehicle type, and annual mileage—are things you can manage over time.
Even if you live in a high-risk area, have a newer vehicle, or a few blemishes on your record, you don’t have to overpay. Different companies weigh these 15 factors differently. By shopping around, you can often find an insurer that’s a better fit for your specific profile.
Compare quotes regularly, keep your record clean, and adjust your coverage and deductibles thoughtfully. Enter your ZIP code into our online form to start comparing insurance quotes from top insurers in your area and see how these factors play out in real numbers.
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