Here are the factors auto insurance companies use to calculate premiums:
Vehicle: Vehicle year, make, model, safety features, and repair costs get reviewed.
Mileage: Drivers who don’t get behind the wheel often are less likely to cause an accident, so their rates tend to be lower.
Age: Younger drivers between 16 and 25 see higher rates due to inexperience.
Gender: Between males and females, male drivers tend to be more likely to file a claim, so female drivers see lower rates.
Credit score: Drivers with low credit scores are more likely to file a claim, so insurers see you as a responsible driver if your credit score is high.
Location: Companies consider vandalism, theft, and accident rates in your state. Insurers also consider where the vehicle is parked and whether the area is urban or rural.
Driving record: Driving records provide details about the driver’s history, including traffic violations and accidents.
Type of coverage: Type of auto insurance coverage, coverage limits, and deductible amount.
As mentioned, rating systems vary, so auto insurance premiums will vary from company to company.