What makes car insurance more expensive?

A variety of factors may make your car insurance more expensive, including your (1) age, (2) credit score, and (3) driving record. Compare quotes with hidden discounts to lower your rates.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

UPDATED: Apr 3, 2022

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Here's what you need to know...

  • There are many factors that go into your car insurance premiums
  • Your age and marital status will make your car insurance rates higher or lower depending on the risk you represent
  • The vehicle you drive will impact your rates
  • Your driving history is one of the biggest factors making up your car insurance premium

There are quite a few reasons why car insurance is more expensive for some drivers that other. The type of car you drive, your age, and even where you live can make your car insurance more expensive.

Understanding these factors can save you money.

Car insurance companies have a formula they use to determine your car insurance rate. Each insurance company’s formula may be different, and they may vary by state based on different state laws as well.

For example, some states are allowed to consider your credit history but others are not.

Since the formulas are different and car insurance is usually competitive, you may be able to get lower car insurance by shopping around. By comparing several different quotes you can determine which policy is the best value.

Enter your zip code now and compare car insurance rates in your area!

What Makes Car Insurance More Expensive: Elements That Influence Rates

The very basics of your car insurance profile will consist of:

  • Your age
  • Your gender
  • Your marital status
  • Your residency

The younger you are, the more expensive your car insurance will be. This is usually the case up until age 25, at which time you can usually qualify for a rate reduction.

Gender is also taken into consideration. Females are considered to be more responsible and males are considered to be better drivers. Stereotypes may be wrong, but statistics are still factored into your car insurance rates!

Sometimes marital status is also considered. Being married can keep your rates lower because if you are married you are considered to have more responsibilities and therefore be more responsible.

Along the lines of responsibility, your credit score can also make your car insurance more expensive.

The lower your credit score is, the higher your car insurance rate will be. This is based on the concept that if you have poor credit you may not be responsible and so, therefore, you are considered to be a higher risk.

Where you live makes a difference because if you are located in a high crime neighborhood that makes car insurance more expensive. If you live near a police station or fire station it can help lower your rates.

Even the state in which you reside makes a difference on how expensive your car insurance is going to be.

Typical car insurance rates vary greatly from state to state, so if you live in a high car insurance rate state there is not much you can do without moving. However, there are ways to reduce your rates and get some relief.

The make and model of your car are also going to be large determining factors in your car insurance rates. Before you buy a car, it is a good idea to get a quote for the type of car you are considering and find out if the insurance is something you can even afford.

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What Makes Car Insurance More Expensive: Reducing Rates

No matter how expensive your car insurance is, there are ways to reduce the rates. In addition to the typical discounts, there are other things you can do to help lower your premium.

The typical discounts are:

  • Multi-policy discounts
  • Safe driving
  • Safety features
  • Security features installed on the car
  • Being claims free

Discounts vary by insurance company, so shopping around can help you save more money.

There are other ways to save money on insurance as well. If you can find garaged parking for your car you may be able to reduce your car insurance rates.

The distance you drive annually also affects your car insurance rate, so the less mileage you put on your car the lower your rates will be.

This is based on the concept that the less you are on the road the less chance there is of getting into an accident or needing to submit a claim.

What Makes Car Insurance More Expensive: Shop Around

Since car insurance is expensive, it is a good idea to shop around to find the best car insurance rates. Shopping online is one of the easiest ways to do this because you can submit one request and receive multiple quotes.

The key to finding the least expensive car insurance rates is in comparing quotes verbatim. Each quote should be for the same make and model car and based on the same driver profile statistics.

You also need to be sure that you are comparing the same amount of coverage, meaning the limits are the same, and that the deductibles are the same.

Any additional coverage should also be comparable.

There are many factors that make car insurance more expensive, but you can reduce your rates through different tactics.

Find the least expensive car insurance rates now by entering your zip code here!

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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