Some rating factors are out of your hands. Others, from your deductible to how often you shop around, are easy to change.
Key facts
- Insurers price car insurance on your driving record, vehicle, location, mileage and coverage choices.
- In many states, credit-based insurance scores also affect rates, though some states limit or ban their use.
- Raising your deductible and bundling policies are common ways to lower premiums.
- Comparing quotes regularly is one of the most effective ways to save.
Car insurance prices vary a lot between drivers and between insurers. Understanding the main factors shows where you have room to save.
What insurers look at
| Factor | Why it matters |
|---|---|
| Driving record | Accidents and violations suggest higher risk |
| Vehicle | Repair costs, safety features and theft rates |
| Location | Traffic, theft and weather claims in your area |
| Annual mileage | More driving means more exposure to accidents |
| Age and experience | Newer drivers are statistically riskier |
| Coverage and deductible | More coverage and lower deductibles cost more |
| Credit-based insurance score | Used in many states; limited or banned in some |
Ways to lower your premium
- Raise your deductible, if you could comfortably pay it after a claim.
- Bundle policies, such as home and auto, with one insurer.
- Ask about discounts for safe driving, good students, low mileage or safety features.
- Drop collision or comprehensive on a car whose value no longer justifies the cost.
- Shop around every year and whenever your circumstances change.
Smart tip
When comparing quotes, keep the same liability limits and deductibles. Cutting coverage to get a lower price isn’t the same as finding a better deal.
Check this
Your state’s department of insurance publishes consumer guides and complaint information for insurers. It’s a useful check before switching companies.
Keeping costs down over time
A clean driving record is the most powerful long-term factor, and many insurers reward it. Review your policy once a year, match coverage to your car’s current value and use our guide to coverage types to make sure you’re paying only for what you need.
Questions we hear
Why did my rate go up when I didn’t have a claim?
Rates can rise because of wider factors, such as repair costs, claims in your area or changes in the insurer’s pricing.
Do telematics programs save money?
They can, if you drive safely and not too often. They track driving through an app or device, so read how the data is used.
How often should I compare quotes?
At least once a year, and whenever something changes, such as moving, buying a car or adding a driver.
This guide is general information, not insurance or legal advice. Coverage, prices and rules vary by insurer and by state, so read your policy documents and check with your insurer, a licensed agent or your state’s department of insurance before you decide.