To be able to drive lawfully, almost all drivers must have a minimum level of auto insurance. There is no set price that every driver must pay. The amount of your auto insurance rates is determined by a variety of criteria by car insurance providers.
These variables include the kind of car you drive, your driving history, your claim history, and the state in which you reside. Depending on the auto insurance laws in your state, other variables could also include your age, gender, credit score, and ZIP code.
When evaluating vehicle insurance renewals and comparing auto insurance quotes, it may be helpful to be aware of the elements that affect your cost of car insurance.
Credit history
Insurance companies value your credit history since it can be used to anticipate your behaviour in the future. “Credit has been used in the insurance industry since the 1990s to help carriers assess the risk of claims being filed,” says Cynthia Moore of Salzburg Insurance in Norfolk, Virginia.
According to studies, persons with lower credit scores are statistically more likely to submit more claims than those with higher credit scores, she said. As a result, insurers may raise the premium to account for the increased risk.
Location
Moore claims that the population density indicated by your garaging ZIP code can affect the chance of thefts and accidents. Although it’s vital to keep in mind that in California and Michigan, auto insurance providers are not permitted to utilise your ZIP code or a number of other non-driving insurance criteria to set your premiums.
Due to associated loss causes, people who live in places with severe weather may also have to pay higher premiums. For instance, according to the NICB, Hurricane Harvey caused damage to more than 422,000 insured automobiles, Hurricane Katrina caused nearly 300,000 claims, and Superstorm Sandy caused 250,500 claims.
| State | Average annual full coverage premium | Average annual minimum coverage premium |
|---|---|---|
| Alabama | $1,843 | $441 |
| Alaska | $1,946 | $421 |
| Arizona | $11,810 | $587 |
| Arkansas | $11,907 | $443 |
| California | $2,291 | $636 |
| Colorado | $2,121 | $500 |
| Connecticut | $1,533 | $620 |
| Delaware | $2,103 | $801 |
| Florida | $3,183 | $1,128 |
| Georgia | $2,085 | $639 |
| Hawaii | $1,275 | $344 |
| Idaho | $1,133 | $267 |
| Illinois | $1,806 | $552 |
| Indiana | $1,295 | $327 |
| Iowa | $1,315 | $223 |
| Kansas | $1,878 | $416 |
| Kentucky | $2,124 | $678 |
| Louisiana | $2,909 | $815 |
| Maine | $941 | $225 |
| Maryland | $1,971 | $815 |
| Massachusetts | $1,262 | $429 |
| Michigan | $2,691 | $1,104 |
| Minnesota | $1,760 | $585 |
| Mississippi | $1,771 | $446 |
| Missouri | $1,943 | $490 |
| Montana | $1,889 | $310 |
| Nebraska | $1,624 | $359 |
| Nevada | $2,779 | $973 |
| New Hampshire | $1,262 | $319 |
| New Jersey | $1,754 | $782 |
| New Mexico | $1,591 | $346 |
| New York | $3,139 | $1,371 |
| North Carolina | $1,446 | $432 |
| North Dakota | $1,302 | $269 |
| Ohio | $1,266 | $338 |
| Oklahoma | $1,998 | $406 |
| Oregon | $1,415 | $616 |
| Pennsylvania | $2,040 | $428 |
| Rhode Island | $1,886 | $551 |
| South Carolina | $1,532 | $524 |
| South Dakota | $1,553 | $276 |
| Tennessee | $1,429 | $371 |
| Texas | $2,109 | $565 |
| Utah | $1,510 | $539 |
| Vermont | $1,061 | $238 |
| Virginia | $1,439 | $494 |
| Washington | $1,410 | $515 |
| Washington, D.C. | $2,072 | $607 |
| West Virginia | $1,580 | $421 |
| Wisconsin | $1,292 | $358 |
| Wyoming | $1,582 | $263 |
Driving record
A speeding ticket conviction typically results in a smaller premium increase than an accident that was your responsibility. However, you can anticipate a further increase in your rates if you have a serious infraction, such as a DUI conviction.
select insurers may refuse coverage for select high-risk drivers, particularly those with a DUI record or several convictions and accidents within a short period of time.
Age and gender
Male drivers are more prone than female drivers to speed, drive while intoxicated, and fail to buckle their seatbelts, according to the IIHS, which may help to explain the rising premium trend.
Between 1975 and 2020, the overall ratio of male to female automobile fatalities was more than twice every single year. The improvement in automobile safety features is largely responsible for the trend in recent years’ statistics that indicates the gender gap is closing. Newer car models have been shown to lower mortality for both sexes every decade, according to crash statistics.
In actuality, male and female death rates have fallen by 14% and 10%, respectively, since 1975.