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Before you buy,

Equivalent cars might not
cost the same to insure. If you're in the market for a car, get comparison quotes for the vehicles you have in mind.

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Whether you're insuring one
car or two, we're prepared to help you find the coverage you need from a trusted and respected provider.

If only there were a formula, right? A host of factors can impact the cost of an auto insurance premium. Some are beyond your control, but others you can influence. This guide can explain it all.

These Factors Can Affect Your Monthly Premiums

When you begin shopping for a policy, there are several factors that go into calculating just how much you'll pay for a premium. How your premium gets calculated remains a mystery, as there's no set formula. But what we do know is which factors play an important role in determining how much it'll cost for you and your family to be fully protected in the event of an accident. Before you purchase your new policy, make sure you understand each of these factors. Some are within your control, and others are far outside.

Lady in driver seat of car holding keys out of window.
  • Your driving record: Your history as a driver, by no surprise, has a direct impact on your premiums. Simply, if you've had a lot of accidents and claims, you're likely to pay more for coverage. That's because insurance companies consider those drivers higher risk — and therefore, charge a premium for those motorists to receive coverage.
  • Your birth date: The older you are, the less it's going to cost to insure you. Any driver age 25 or younger can attest to the fact that a policy is much more expensive for younger drivers. Statistically, motorists ages 50 to 65 are the least expensive to insure because they're considered the lowest-risk age group.
  • Your gender: Ladies, you know it's true: Men are higher-risk drivers, which means it costs more to insure men. Conversely, women are considered lower risk takers because they're statistically in fewer accidents.
  • Your marital status: Single folks might not like to hear this, but in the insurance industry marital status has a direct correlation with risk. Those drivers who are married are in statistically fewer accidents; unmarried motorists are considered high-risk and therefore pay more on average for protection.
  • Your address: Insurers store data that show whether certain ZIP codes are more prone to auto accidents than others. That information, coupled with your commute, can show a provider whether you're more likely than not to be in an accident.
  • Your ride: Of course, the type of car, its age, and its features such as safety equipment will affect the cost of your plan. Some drivers compare rates for different cars before they buy because comparable vehicles could cost significantly less to insure.
  • Your credit: One of the most surprising factors, your personal credit rating has a direct impact on how much it costs to get coverage. This is because individuals who have strong credit pay their bills on time, are less likely to enter risky financial transactions and are considered responsible overall. Insurers can use this information to gauge whether or not you'll be a responsible motorist and a wise risk to insure.