Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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The lowdown...

  • Age is one factor that affects your car insurance rates
  • Many other factors have an impact on your premiums
  • Knowing what you can control will help you get the best rates possible
  • Shop around and compare plans to find the one that best fits your needs

Did you ever wonder if your age affects your car insurance rates?

The fact is that insurance companies use many different factors to determine insurance premiums.

One of these factors is age, but there are many others. Some factors are related to demographics while others are things that you can change over time.

If you are concerned about what affects your auto insurance rates and want better coverage, compare at least three to four policies today! Enter your ZIP code above to begin!

Factors that Affect Insurance Premiums


Below is a list of the most common factors that car insurance companies use to decide how much you will pay for your car insurance. Look over all of these factors and see which ones you think will affect you the most.

– Age Range

Insurers use actuaries and statistics to determine the risk based on an age range rather than one particular age.

For example, if you are 22 years old, your premiums would not be any higher than someone who is 24. You are both in the same age range that has the most accidents of any other age group (18-24).

Similarly, once you hit the age of 25, you would see your premiums drop slightly because you are in the lower risk age group.

– Marital Status

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Believe it or not, married people have fewer accidents than those who are single on a general scale.

No one knows exactly why this is true, but it can work for you when you are shopping for car insurance.

– State of Residence

The state in which you live will influence insurance rates, too.

Each state has certain criteria and mandated requirements for liability insurance. Some states also have requirements that drivers carry uninsured motorist coverage or personal injury protection.

– Driving Record


Your driving record is the most important factor in determining your premium insurance rates. Your driving record is the best predictor of future accidents.

If you have had accidents in the past, you are more likely to have another accident.

Your risk level is higher to the insurance company, and you have more points on your driving record. If you can get these points down over time, your premiums will eventually decrease.

– Credit Report

Your credit report is another factor in deciding your premium rates. Though it is not the most important thing that insurance companies look at, it is important to them to know if you pay your bills on time.

A bad credit report can raise your rates slightly to make up for the risk that you present due to your poor credit status.

– Memberships and Affiliations

While some factors can work against you, others can help your rating and your premium rates.

If you are affiliated with certain organizations, careers, or professional groups, you may get a reduction in your car insurance. Be sure to ask about these possible membership discounts when you apply for new insurance or check on your current policy.

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Know What You Can Control

Now that you understand what factors influence your premiums, you should consider which ones you can control and work on those factors.

For example, you cannot control your age, but you can control your driving record. Even if you are in one of the highest risk age groups, you can still save on your car insurance if you improve on your driving record.

Avoiding distractible driving, DUIs, and other costly driving mistakes can go a long way toward protecting you from increased premiums and ensure that you can get the best rates available.

Make Insurance a Part of Your Budget


If you are going to include insurance as an important part of your monthly budget, you need to make sure to incorporate it in your list of monthly expenses.

Thinking of insurance as an afterthought is a mistake. It is just too important to put on the back burner.

If you do not consider insurance one of your most important budget items, you will have more of a tendency to forget about it when you pay your bills each month, which puts you at a higher risk to forget it.

If you let your insurance lapse, you risk fees, court costs, and loss of car registration. You could even have your license suspended in some states on a first offense.

Guard against anything that can adversely affect your driving record at all times.

How do I choose the best policy?

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When choosing the level of coverage you want for your vehicle, you should first consider your state minimums for liability coverage. Different states have various requirements to meet the state mandates so make sure you are aware of what the laws are in your state.

Once you decide on the liability minimums that you must carry to comply with state laws, you should consider the optional coverages that you want to add to your policy based on your personal needs.

For example, if you travel a lot or take other people in your car with you, you may first want to increase your liability coverage amounts so that you are paid more per incident than what the state minimums dictate.

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Optional but Important Coverage


Adding extra liability protection helps you feel more secure in knowing that you will be covered even if you travel to another state.

Additionally, you will want to consider the following other types of coverage:

  • Collision — Collision insurance exists to cover damage that you receive to your vehicle as a result of a car accident. Collision insurance is not automatic coverage as many people believe, so be sure that you ask about it when you are shopping for insurance.
  • Comprehensive — If you need insurance that will cover many other situations other than accidents, you need comprehensive insurance coverage. This type of coverage is useful for theft, incidents of vandalism, acts of nature, and others.
  • Medical Coverage — Medical coverage is insurance that pays for treatment of injuries directly due to an accident, therapy, medication, and even funeral expenses.
  • Car Rentals — If your car is out of service following an accident, having car rental insurance can mean the difference between having and not having temporary transportation. It costs just a few dollars a month but may save you a lot of hassle if you drive to work.
  • Roadside Assistance — Roadside assistance gives you instant access to wrecker service, lockouts, and other help if you are stranded by the side of the road. It is 24/7 service and may be worth the extra few bucks you’ll spend on this optional coverage.
  • Personal Injury ProtectionPersonal injury protection (PIP) is an additional insurance plan that will cover you or others involved in an accident where your standard insurance doesn’t cover it. PIP can be helpful if you are ever sued in a no-fault insurance state.

Shop and Save


If you want to save money on your car insurance, it all starts with some research and comparisons between products and companies.

Look at the claim records of three or four companies. Check out their customer service records. Look at what you need to cover your risk and see if you qualify for discounts. Discounts can save you hundreds of dollars over the life of your policy.

If you try shopping around with a few different companies, you will be able to make an educated decision on what you need.

Remember that the one thing you cannot afford to omit is insurance. Don’t leave this important commodity off of your budget and risk financial disaster. Shop and compare now to save big.

Start comparison shopping today for the best auto insurance rates! Enter your ZIP code below!