What affects auto insurance costs?

Factors

• The type of vehicle you drive. Typically, the more expensive the vehicle, the more it will cost to insure. Vehicle safety ratings (availability and cost of repairs etc.) also influence the rates charged for a particular vehicle.
  
• Your location. Because of increased risks of theft, vandalism or accidents, urban drivers typically will pay more than rural drivers.
  
• The distance you drive. If you drive longer distances or use your vehicle for business, you typically will pay more.
  
  

Discounts

• The number of vehicles on a policy and additional policies (such as homeowner or renters) with the same insurance company can earn you discounts.
  
• The deductible you choose. If a policyholder is willing to take on a portion of the risk in the form of a deductible, the company will generally offer a discount. It demonstrates the policyholders willingness to pay for the smaller loss and to share in the risk with the insurance company.
  
• Your age, marital status, and gender. Insurance companies collect data to identify characteristics that demonstrate more or less likelihood of a loss. Your advisor can help explain these characteristics and potential impact.
  
• Your driving record. Insurance companies have access to information on driving and claim records. This is used to help determine eligibility and cost. A better driving record will typically be reflected in the cost.
  Your credit history. Because there is a correlation between a driver's credit history and auto insurance losses, most insurance companies use this data to help determine rates.
  
  

How will a teenage driver affect my insurance?