Multiple factors are used when determining auto insurance premiums. This is why your rates may be different from a friend or family member’s rates, even if you have the same coverage amounts for the same type of car and you both have similar driving records. Car insurance companies typically analyze their claims and categorize them on factors such as marriage, driving record, driving experience, and several other factors. Insurers in certain states may also use customers’ zip codes to determine car insurance premiums. So if you are in a category that tends to have more accident claims or you live in an area with more reported auto thefts, you are probably going to pay more for your car insurance.

Following are the main factors that may possibly affect your car insurance premium; to be determined by what state you live in:

• Commute Mileage (distance driven for work)
• Date of Birth and Driving Experience
• Driving History (violations, accident claims)
• Gender
• Marital Status
• Occupation (whether a vehicle is used)
• Credit rating
• Prior Insurance
• Type of Coverage Requested
• Vehicle Type and Value (i.e. 2-door, 4-door, sedan, sports car, truck, SUV, etc.)
• Zip Code

There are also discounts available that may help lower the price of your insurance premiums. These discounts are offered, in part, based on the following factors:

• College Degree
• Good Student
• Multi-Car
• Safety Course Certificate
• Senior - Mature Driver
• Vehicle Safety (low jack, homing device)

Although car insurance companies use these factors to determine rates, they cannot raise rates any time they wish. The company has to submit a rate change request along with documentation to their controlling government agency such as the Department of Insurance, which may then be approved or denied.