What Factors Affect Your Car Insurance Premium?

The price that you ultimately pay for your auto insurance policy depends on a number of small factors that many people are unaware of. The average insurance premium paid by drivers is roughly $800, though depending on various factors, there can and often is significant divergence from this average in both directions. A combination of any of the following factors are all commonly used to decide the premium that a driver will pay for any insurance policy, and they aren’t determined in any particular order.

Driving frequency

The more frequently that you drive your car, the higher the probability that you’ll be involved in a roadside accident. If an auto insurance company believes that you commute a significant distance to work on a daily basis, then chances are that your premium will be slightly elevated for it.


Any drivers who happen to live in an area that poses a high risk for theft, accidents, vandalism or other incidents will generally be more likely to have a higher premium than average. The frequency of litigation, medical/auto repair expenses, frequency of fraud and even the weather will be factored into the locations’ impact on your premium.


It’s been statistically determined that female drivers get into accidents less frequently than male drivers. In addition to being involved in less accidents overall, female drivers have also been shown to have less DUI infractions. Though there are naturally exceptions to the rule, many auto insurance companies will tend to assign slightly lower premium rates to women on account of the lower likelihood of their involvement in serious accidents.


In the same way that auto insurance companies will refer to an applicant’s age in order to make a rough estimate of their chance of being involved in an accident, the applicant’s age will be taken into account as well. Roadside incident statistics demonstrate a lower proportion of the mature population being consistently involved in accidents than the younger demographics. If the applicant for auto insurance in below the age of 25, then they’ll be more likely to get charged slightly more for their premium.

Driving record

Even with the consideration of age and gender, the applicant’s standing driving record (or lack thereof) will potentially be one of the strongest deciding factors when it comes to the amount that they’re charged for their car insurance premium. Drivers who have a history of frequent crashes will always be charged far more for their car insurance premium than drivers who have a perfectly clean record. Brand new drivers who have not been insured for an extended period of time will also be charged more for their car insurance premium than experienced drivers with incident-free records.


Essentially, the factors used to determine what you’ll pay for your auto insurance premium are all used as an indication of just how likely it is that you’ll be in any kind of auto accident. The less likely it appears that a drive will be in an accident, the lower their car insurance premium will generally be. Be advised that different companies will oftentimes use a different combination of certain factors to make their decision on your premium for their insurance policy.

log in

reset password

Back to
log in