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What Affects the Price of My Auto Insurance Quote?

Auto Insurance Policies and Auto Insurance Companies vary greatly within the industry, but there are often a few common factors among most insurers that play an important role in determining how much you pay. This article is a guide to helping you understand some of the common factors that go into Auto Insurance to help you find a better quote.

First, be aware that auto insurance quotes vary widely from company to company. There are a few reasons for this:

  • All Insurance policies are not created equally: Typically, you get what you pay for. There are higher quality policies that cost more.
  • Some policies automatically include the bells and whistles as well as extra services that some of their competitors do not provide.
  • The quality and efficiency of the insurance provider: The more cost efficient the insurer is at handling their business (sales, claims, actuarial accuracy, selection of the insured, etc) the more affordable the insurance is. Usually 'big-name' insurers are the most efficient with their funds.

This is why is it so important for you to shop around for the auto insurance policy that is right for you.

Pricing Factors

Factors that may affect the price you pay for auto insurance coverage that are common amongst insurers are:

The Policy you Buy

  • How many coverages do you buy?
  • Of the coverage, how much do you want?
  • How much is the deductible you are comfortable paying?

The Car you Drive

In General, the more expensive the car, the higher you will pay for coverage.

What you use your car for

Generally, insurers require higher premiums for cars that are more at risk or susceptible to damage or occupant injuries.

  • Do you use your car for work? What line of work are you in? If your car is exposed to more risk of damage you may end up paying more.
  • Where do you drive your car? Because vandalism, theft, and accidents occur more often in small towns and rural areas, these drivers will pay more.

How much you drive

Long distance commuters generally pay more because they are exposed to more risk of accidents.

Your driving record

If your record is spotless, expect to pay less than someone who is accident pron.

Your age, sex, and marital status.

Accident rates are higher among younger and older individuals. This is especially true for single males under the age of 25.

Your Credit History

Insurance companies use your credit history as a predictor for future auto insurance claims. A better credit history generally means paying less.


Be sure to ask for discounts if you are:

  • Insuring more than one car
  • Accident Free
  • A good student