17 Factors That Affect Car Insurance Rates

Personal factors

Several personal factors contribute to the calculation of your car insurance rates in most states. Here’s a look at each.

Age

Generally, younger drivers — those younger than 25 — with little to no experience behind the wheel pay more for car insurance than older drivers do because they tend to get into more accidents.^[1]

In 2020, drivers 16 to 20 years old accounted for 8.5% of all drivers involved in deadly crashes, according to the National Highway Traffic Safety Administration (NHTSA). These same drivers represented only 5.1% of all licensed drivers that year.^[2]

Meanwhile, senior drivers may also pay more for their car insurance policies, with rates rising as they age. This is because older drivers run a higher risk of being involved in a car accident and of being seriously injured. The number of traffic deaths involving drivers 65 and older rose an estimated 14% from 2020 to 2021, according to the NHTSA.^[3]

The national average cost of car insurance for teen drivers is $350 for full coverage and $198 for liability-only policies. By comparison, senior drivers pay an average of $156 and $88 for full and liability-only coverage, respectively.

The following table illustrates how age affects monthly average liability-only rates from top national insurance companies.

Gender

Statistics show women drive more safely, and are less likely than men to get into:

• An accident

• A serious accident

• A DUI accident^[1]

As such, women often pay less for car insurance than men. The average national car insurance cost for women is $179 for full coverage and $101 for liability-only insurance. By contrast, the averages for male drivers are $184 and $104, respectively. The following table illustrates how gender affects average monthly liability rates from top insurers.

Keep in mind, several states prohibit insurers from using gender as a rating factor in car insurance.

Marital status

Insurers generally view married drivers as less risky than their single counterparts. As such, being married may allow you to reduce your car insurance rates.

Occupation

Some car insurance companies take your occupation into account when setting your rates. In the eyes of a car insurer, high-risk occupations might include:

• Real estate agents

• Sales representatives

• Doctors

• Attorneys

Insurers may consider these and other occupations risky because of their generally long work hours, on-the-job stress, lack of sleep, and the amount of time they spend driving. This higher risk can lead to paying more for car insurance.

Meanwhile, people working in “low-risk” occupations might pay less for car insurance. These occupations include:

• Scientists

• Accountants

• Teachers

• Artists

Why might their rates be lower? On average, people in these professions stick to a normal sleep schedule, drive less, and may have more manageable levels of stress.

Driving history

Your driving history plays a key role in how your car insurance rates are set.^[1] Among the things that can ding your car insurance rates are:

• Racking up traffic violations, such as speeding or DUI citations

• Being involved in at-fault car accidents

• Filing claims

Any one of these factors might end up labeling you a high-risk driver, meaning you could end up paying more for car insurance than someone with a clean driving record. For example, the national average cost of car insurance for drivers with clean motor vehicle records is $143 per month. But drivers with DUIs on their records can see their overall average costs climb to $216 per month.

The following data illustrates how different driving infractions can affect monthly liability-only costs from top insurance companies.