Where you live is one. In general, city dwellers have higher premiums than those who live in the suburbs or rural areas do, because statistically, you are more likely to have an accident in city traffic. In some areas, your age, sex and marital status are important factors. Drivers under the age of 25 are involved in more than one-third of all auto accidents and traffic fatalities. Young female drivers have fewer accidents than young males.
Married couples have fewer accidents than single people do.
Vehicle use is another factor that affects your premium. A car used just for pleasure, with limited use, will generally cost less to insure than a car driven to work and back five days a week. Your driving record has a direct impact on insurance premiums. Companies set their rates in part by how many claims and accidents their insureds have, so they must adjust the rates accordingly. Other factors affecting the cost of insurance are fraud, the rising frequency of lawsuits and the amounts of awards, inflation and the rising costs of medical care, automobile parts and labor.