What Factors Affect My Car Insurance Premium?

Brad Corriher of Brad Corriher State Farm
Share this:

MINT HILL, NC – Q: Why do my friend and I pay different amounts for car insurance?

A: Most insurance companies look at a number of factors to calculate the cost of your car insurance.

These include:

Your policy and deductibles

Generally, choosing a higher deductible means a lower monthly payment.

What you drive

Some insurers increase premiums for cars more susceptible to damage, occupant injury or theft. 

How often and far you drive

The more miles you drive in a year, the higher the chances of a collision — regardless of how safe a driver you are.

Usage-based car insurance like Drive Safe and Save™ by State Farm® might save you money when you drive less.

Where you live

Generally, due to higher rates of vandalism, theft, and collisions, urban drivers pay more for car insurance.

Your driving record

Drivers who cause accidents generally pay more. If you are insured and accident-free for 3 years, you likely qualify for a State Farm accident-free savings.

Your credit history

Certain credit information can be predictive of future insurance claims. Maintaining good credit may have a positive impact on your car insurance costs.

Your age, sex, and marital status

Collision rates are higher for drivers under age 25, especially single males. Insurance prices in most states reflect these differences.

Have further questions? I’d love to answer them! Feel free to call or text my office at (704) 526-0887 or visit us in person at 9539 Idlewild Road or online at MyMintHillAgent.com.

Share this: