Factors that affect your car insurance premium
Car insurance companies base premiums on multiple rating factors, including individual driver profiles — to estimate your risk level — your age, ZIP code, vehicle type, driving record, and more. These are some common factors insurers consider when setting rates.
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Age
More experienced drivers pay lower car insurance rates than young drivers. The crash rate for teen drivers aged 16–19 is nearly four times the rate for drivers 20 and older, according to the Insurance Institute for Highway Safety (IIHS).[2] Crash rates are lowest for people in their 60s, and that’s typically when you get the cheapest rates.
Here’s an example of average monthly quotes for liability-only insurance by age.
Liability Rates by Driver Age
| 60s | $76 |
|---|---|
| 50s | $80 |
| 70s | $81 |
| 40s | $90 |
| 30s | $99 |
| 20s | $129 |
| Teens | $180 |
Location
The annual national average for full-coverage car insurance is $2,350, but people in some states pay up to 67% more than that. New York, Nevada, and Florida are the three most expensive states to buy car insurance, according to the latest Insurify auto insurance report.
Factors like population density, regional increases in severe accidents, vehicle theft, vandalism, and damaging weather events can lead to rising rates. Rampant insurance fraud contributed to soaring insurance rates in Florida in 2023.[3]
Where you live in the state and local population density can also affect premiums. In New York, drivers in Staten Island pay an average of $422 monthly for full coverage, while people living in the less densely populated city of Rochester in upstate New York pay $282 per month.
Driving record
Your driving record is one of the most critical factors in determining your car insurance rates. If you have a clean driving record, you’ll likely pay significantly less than drivers with traffic violations or accidents on their records. Car insurance companies tend to charge more if your driving habits indicate you could be a high-risk driver.
Drivers with a DUI pay the highest insurance rates, on average. COUNTRY Financial, the cheapest insurer for drivers with a DUI, charges $26 per month for liability coverage. By comparison, the company charges drivers with a clean record just $16 per month for liability insurance.
Drivers with at-fault accidents experience rate increases of about 26%, according to Insurify data. Depending on your insurance company, you could face a premium surcharge every year when your policy renews, for three to five years. Some insurers offer accident forgiveness coverage for your first car accident.
Speeding tickets can also increase your premium, but how much of a spike you’ll see depends on your overall record, location, and insurance company. The following table shows the average monthly liability-only rates top insurers charge compared to their rates for drivers with clean records.
The below rates are estimated rates current as of: Tuesday, April 1 at 12:00 PM PDT.
Disclaimer: Table data sourced from real-time quotes from Insurify’s 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer’s unique driver profile.
Make and model of your car
The car you drive can affect your auto insurance rates significantly. Insurers consider car and repair costs, risk of theft, and overall safety when quoting premiums, according to the Insurance Information Institute (Triple-I).
For example, theft rates and repair costs are higher for luxury vehicles compared to those for a modest sedan, according to Triple-I. A luxury vehicle may also be more likely to be the target of vehicle thieves.
Insurers also consider safety when setting rates. The Insurance Institute for Highway Safety named the Subaru Forester and Outback Top Safety Picks in 2023, and those cars are the cheapest to insure, Insurify data shows.
Choosing a safe, reasonably priced, and easily repaired vehicle can help reduce your premium. Right now, these are the 10 cheapest cars to insure.
|
Vehicle Make and Model  |
Average Monthly Quote: Full Coverage |
|---|---|
| Subaru Forester | $147 |
| Subaru Outback | $151 |
| Honda Odyssey | $155 |
| Dodge Grand Caravan | $158 |
| Toyota Sienna | $160 |
| Honda CR-V | $160 |
| Ford Ranger | $163 |
| Chevrolet Trailblazer | $164 |
| Jeep Liberty | $164 |
| Hyundai Santa Fe | $166 |
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