Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager Chris Harrigan

UPDATED: Apr 13, 2022

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Key takeaways...

  • Bad credit can have a negative impact on monthly insurance premiums
  • Males drivers are considered to be high-risk drivers
  • People who file too many claims will pay higher premiums

What affects car insurance rates? There’s no one answer to this question, but several. Added to the difficulty with answering this question is the fact that car insurance companies rarely set rates based on the same things.

But, this offers car owners a great opportunity. When they receive quotes from more than one insurance company, they may be offered some surprisingly low quotes in the crowd.

Find affordable car insurance with our FREE zip code search! Enter your zip code above to get started!

Credit Scores Affects Car Insurance Rates

Several companies have begun to do credit checks, and car insurance companies are no exception.

Every driver should take care of their credit and realize that one’s credit score affects car insurance rates! A high credit score is considered to be 720 and above, while undesirable scores fall below 650.

One of the ways a credit score is determined is based on the types of entries that people receive from their creditors.

For example, consumers that have consistently paid their bills late will have lower scores because creditors report the late payments to the credit bureaus.

After car insurance companies obtain their clients’ credit reports and discover that these people have paid their bills late, they deduce that these people will also pay their car insurance premiums late.

Because of this, the car insurance companies quote these people a higher car insurance quote.

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Zip Code Can Affect Car Insurance Rates

The first thing car insurance companies ask is for a future clients’ zip code.

The zip code helps them set car insurance rates because some zip codes are known for having more accidents than others.

When people drive in an area where the probability of being involved in an accident goes up, car insurance rates will be higher.

People looking for car insurance coverage should read our Car Insurance 101 for the best tips on saving money!

Claims Filed in the Past

The number of car insurance claims filed with past insurance companies will affect what a new car insurance company will charge a client.

Car insurance companies are looking for people who are the least likely to need to file a claim.

If people have filed several claims with their former car insurance companies, the new car insurance company knows they will be highly likely to file a claim with them, too.

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Driving Without Car Insurance

Most states have car insurance laws requiring that people purchase state car insurance before they take their vehicles out on the public roads.

Those who don’t do this are subject to the penalties outlined by each specific state.

When these people finally do decide to purchase car insurance, the company won’t look favorably on the fact that this person was willing to drive without insurance.

Driving without insurance means that people are willing to take several risks such as:

  • Being stopped for a traffic violation and not being able to present proof of insurance
  • Causing an accident without insurance
  • Having their licenses suspended
  • Having to purchase high-risk car insurance that is much more expensive than regular insurance
  • Having to pay a possible fine

Car insurance companies see someone who is willing to run all the risks listed above as someone who is more likely to take risks while driving.

Therefore, these people are more likely to be involved in a car collision. Because of this, they will be charged higher rates for their car insurance.

Every driver should at least have the state minimum car insurance to drive legally.

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The Driving Record

When car insurance companies consider insuring new people, they will first obtain their driving records from the Department of Motor Vehicles (DMV).

The driving record is where all infractions will have been recorded, such as DUI/DWI arrests and traffic tickets for moving violations.

Each infraction adds a certain number of DMV points to the person’s driving record.

The more points people have, the more dangerous they are considered to be by car insurance companies.

The most dangerous drivers have to pay the highest car insurance rates.

Gender and Age Effects on Car Insurance Rates

Young males are known for being risky drivers. They are willing to drive without wearing seatbelts and they are highly likely to take chances more mature drivers wouldn’t take.

These statistics make the young male driver the most dangerous drivers on the roads.

The fact that all teenagers experience the most fatalities due to car collisions makes these people high risk for car insurance companies.

People who are more likely to file claims for car repairs, as well as bodily injuries, are going to be quoted higher rates because of it, and young, male drivers fall into this category.

Number of Miles Driven

People who drive several miles each day have much more time to be the victim of an accident; they also have more opportunities to be the cause of the accident.

When this is the case, car insurance companies charge higher rates based on the fact that these people will have more chances to need to file a claim to have their vehicles repaired.

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The Amount of the Deductible

People looking for car insurance can’t influence how much they are charged for their premiums. However, accept more of the risk by setting a high car insurance deductible.

Several factors affect car insurance rates. Not all young males are irresponsible behind the wheel, but most are still quoted the highest rates.

Many car insurance companies are willing to see people as individuals; they only need to take the time to compare quotes on this website.

Don’t wait any longer! Use our car insurance comparison tool for FREE! Enter your zip code below to get started!


  1. https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/
  2. https://www.nationwide.com/
  3. https://www.acceptanceinsurance.com/our-products/auto-insurance/high-risk-auto-insurance/
  4. https://www.penndot.gov/Pages/default.aspx
  5. https://en.wikipedia.org/wiki/Driving_under_the_influence
  6. https://www.ncsl.org/research/health/state-seat-belt-laws.aspx
  7. https://www.geico.com/information/safety/auto/safety-library/teen-driving-resources/
  8. https://www.statefarm.com/simple-insights/saving/these-7-factors-determine-car-insurance-premiums