What affects your car insurance rate

Factors commonly considered

Insurers set rates using rating rules that regulators in most states review in some form. Which factors are allowed differs by state, so ask your state insurance department if you need to know what applies where you live.

• Your driving record and claims history
• The vehicle you drive, including its value and repair costs
• Where the vehicle is kept
• How much you drive
• The coverages, limits and deductibles you choose
• Your age and driving experience
• Whether coverage has been continuous

Why two quotes can look alike but differ

A cheaper quote may carry lower limits, a higher deductible or fewer coverages. Compare the declarations pages line by line before you decide.

Ways to manage the cost responsibly

• Compare quotes with identical limits and deductibles.
• Choose a deductible you could pay without hardship.
• Ask your insurer to list every discount you qualify for, and read how each one is defined.
• Make sure the drivers and vehicles on your policy are accurate.
• Review your coverage at each renewal.

A state example

Some savings are set by law. Pennsylvania requires a premium reduction of at least 5% for each vehicle on a private passenger policy when all named policyholders are 55 or older and have completed a PennDOT-approved driver improvement course (Pennsylvania Insurance Department).