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What Affects the Price of Auto Insurance?
What you pay for auto insurance varies by company and by:
  • What you buy. Coverages are priced individually so how much you'll pay depends upon: 1) How much coverages you buy, and 2) How much each will pay. Deductibles lower the price by shifting part of a loss to you.
  • What kind of car you drive affects how much you pay, since coverage on your vehicle depends on its value. Generally, the more expensive the car, the more you pay.
  • Where you drive. Drivers tend to have more losses if they live where there's a high rate of accidents or vandalism. Generally, urban drivers pay more for insurance than those in small towns or rural areas.
  • How much you drive. The chance of an accident generally increases as driving increases. People who use their car for business and long-distance commuting normally pay more than those who drive less.
  • Your age, sex, and marital status. Accident rates are higher for all drivers under age 25, especially young males and single males. Insurance prices in most states reflect these differences.
  • Your driving record also affects price. Drivers who cause accidents generally must pay more than those who are accident-free for several years.

What can I do to hold down the cost of my premiums?

  • If you're shopping for a car, consider how your choice will affect premiums. Some insurers increase premiums for cars more susceptible to damage or occupant injury, and lower rates for those that fare better than the norm.
  • Ask about discounts for good students, having more than one car insured, accident-free driving, and others. Please select a state or province to learn more about the specific discounts available in your area.
  • Consider joining a car or van pool, or finding other transportation to work. If you reduce your driving mileage enough, you may lower your premiums.
  • Drive carefully.

For more in-depth information, visit State Farm.


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