Car & Auto Insurance Quotes 101

What Affects Car Insurance Premiums?

Numerous factors affect car insurance premiums and decisions about safer drivers are based on statistics rather than judgments or opinions. The factors that insurance companies commonly use to calculate car insurance rates are:

1. Age. Drivers under 25 years are considered the riskiest, while drivers between 50 and 65 years are considered the safest.

2. Gender. Women are considered more conservative drivers than men, but as more women drive these statistics are changing.

3. Martial Status. A married person is considered a safer driver than a single person.

4. Geography. Low traffic and low crime areas are considered safer than busy areas and places with high crime reports.

5. The more accidents and moving violations the higher the premium.

6. Older, smaller and cheaper cars have lower premiums than new cars, SUVs and expensive cars.

7. Credit rating is considered a mark of character and can affect the premium.

8. Occupations. A delivery person is considered more at risk than a sedentary bank teller.

9. Education. The higher the education, the less the assumed risk and the lower the premium.

10. Driving distance. The farther your daily commute to work, the higher the premium.

11. The average number of miles you drive each day determines your premiums.

12. Current insurance. Whether you are a new insurance buyer or someone renewing a policy, determines your premium rate.

How Much Should Car Insurance Cost, Anyway?

Costs vary from one company to the next. The rule of thumb is you should buy as much as you can afford to cover your losses. Basically, you should ask about what the minimum required by your state covers, what you want to protect, and how much you can afford.

Get Car Insurance Discounts For Paying Quarterly Or Annually

Various options are available in buying automobile insurance. A buyer can pay monthly, quarterly, biannually, or annually. Each way has its advantages and disadvantages. The advantage of paying quarterly or annually, is you’ll get discount savings and less paperwork. The disadvantage is that you must make sure you have enough in your checking account, you’ll get less reviews on your policy, and you may regret paying a lump sum.

I Got A Speeding Ticket. Will My Auto Insurance Premium Increase

Different insurance companies handle this in different ways. In addition, different states have different criteria on how much an insurance company can raise their rates. In some cases, a first ticket makes no difference in your rates but will affect your discounts. In other cases, the severity of the violation is weighed before a decision is made.

How Are Car Insurance Rates Different Based On My Car's Make And Model?

The make and model of your car will affect your car insurance rate. Both comprehensive and collision rates are calculated not on whether you’re driving a sports car or a sedan, a pickup truck or an SUV, but on the statistics related to that make and model. For example, SUVs will cost more than passenger cars not because they have a higher accident rate but because they cause more damage to other cars during a collision.

How Does Adding A Teen Driver To The Auto Insurance Policy Affect Car Insurance Premiums

Although adding a teen driver to your auto insurance policy will generally raise your car insurance premiums, this hike will be less if your car model has a higher safety rating.

If I Am Not At Fault In An Accident, Can My Car Insurance Premiums Be Raised

Whether or not your accident was considered an “at fault” or “no fault” your car insurance premium rates will be raised. This is because the insurance company still has to pay for your involvement in the accident. If you had insufficient insurance, you may also be asked to get more coverage.

If My Car Is Totaled, Is My Car Insurance Payment Still Due

The insurance company has a policy to “make you whole.“ They value your vehicle according to its Actual Cash Value. After calculating replacement less depreciation costs, you’ll be left in the same financial position prior to your accident.


In considering car and auto insurance quotes, you should not only factor how much you'll be paying in premiums but also how well you are covered for different eventualities.