auto insurance

Auto Insurance: Factors in Pricing

Car insurance providers calculate auto insurance pricing based on your driving history and personal information. They take this data into account to determine how risky it is to insure your car. For example, a driver with several violations or a DUI will have a higher insurance rate than one with a spotless record.

High-risk drivers are always looking for ways to lower their insurance rates, while low-risk drivers try to maintain their premiums. You probably already realize different factors affect your auto insurance costs. Understanding them can help you make an informed decision when buying a policy. So, let’s review some of the factors that will affect your auto insurance pricing.


This includes your age, geographical location, marital status, gender, and even your credit score. For instance, statistics show that teens are more likely to crash than older, more experienced drivers. As a result, a teenage driver should expect higher insurance rates.

Also, your geographical location affects your insurance rates. Many accidents occur close to home. If you live in an urban area, your insurance rates tend to be higher because you’re at greater risk for collisions and theft.

And as for credit scores, lower numbers typically result in higher premiums.

Car-Related Factors in Auto Insurance Pricing

The type of vehicle you own can drive up auto insurance pricing because some cars:

• Are more likely to be stolen
• May lack safety features
• May cost more to repair

For example, driving a vehicle with excellent safety ratings probably means a lower premium because there’s less chance of making a claim on medical bills.

Your Driving Habits

Driving habits include your driving history and activity, as well as how your car is used. For instance, making several auto insurance claims in the past signals to an insurance provider that you’re a high-risk driver, which translates as higher rates.

In contrast, when you don’t use your car a lot, your premiums may be lower. This is because people who spend less time on the road are less likely to get into an accident.

Affordable Auto Insurance Pricing

If you’re shopping around for affordable auto insurance pricing, it’s important to understand that auto insurance only provides coverage up to your policy limit.

We offer several discounts, ranging from certain occupational groups to good students. Contact us at (925) 447-1744 to find out if you’re eligible for auto insurance discounts.