Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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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

UPDATED: Sep 13, 2020

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Key takeaways...

  • A person’s maturity level is a large part of how car insurance companies set people’s rates
  • Those who are purchasing comprehensive coverage will be quoted a higher rate if they live in an area with a high crime rate
  • Anyone who is deemed to be irresponsible will be quoted higher rates for their required liability coverage

What makes car insurance more expensive? Each car insurance company will have a different answer to this question. Every car insurance company has a different formula for how they calculate the rate that each individual car insurance client must pay.

Even so, people may expect that their credit scores, their marital status, their grade point averages, whether or not they have children and the type of car they drive to be factored into the cost.

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Table of Contents

The Importance of a Person’s Maturity Level

A person’s maturity level is a large part of how car insurance companies set people’s rates.

A person who is thought to be less responsible than others is going to be believed to be a higher risk than those who are considered to be more responsible.

Those applying for car insurance that is expected to be irresponsible and high risks will always pay more for their car insurance. Some of the many factors that affect your car insurance rates are listed below.

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A Low Credit Score Means High Rates

In some states, car insurance companies may not ask to do a credit check. In states where the credit check is allowed, people have the option to decline it.

These people will pay for this with higher premiums, but their premiums may have been even higher if the car insurance company had done the credit check and found that the credit score was very low.

If you have a low credit score we have a list of companies that have no credit check.

A low credit score is the cause of higher car insurance rates because the score is based on how well people use the credit that has been extended to them.

Those who have high scores use their credit very responsibly and those with low scores do not. Therefore, the credit score is just one way that car insurance companies gauge responsibility in a person.

Unmarried Males Under 25 Pay Some of the Highest Rates

A person’s marital status also informs car insurance companies of people’s ability to conduct their lives in a responsible manner, and those who are not married will have car insurance that is very expensive.

Some of the reasons for this are:

  • Young males are more likely to not wear their seat belts than other groups
  • They are more likely to drive after having ingested alcohol
  • They are more likely to drive recklessly, especially if their friends are passengers
  • They are more likely to drive at high speeds
  • They are involved in car crashes that are more severe than others
  • Young drivers die in car crashes more often than in any other manner

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Young Drivers Not In School Pay Higher Rates

Young drivers are in the highest risk category, and they receive the highest car insurance rates.

If these young drivers are not in school and earning good grades, they are unable to take the good student discount and lower their rates by as much as $300 with some car insurance companies.

Since they are not going away to school, they are left without the opportunity to significantly lower their premiums by leaving their vehicles parked in their parents’ garages.

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Unmarried, Childless Young Drivers Pay Higher Rates

The fact that a lot of people in this group do not have children is another reason they are not be seen as responsible by car insurance companies. Those with children who are also married have taken on several responsibilities, and car insurance companies place them in the lowest risk category.

Drivers who are without these responsibilities will have higher car insurance rates.

Irresponsible drivers are believed to be irresponsible in every area of their lives. This includes the time that they sit behind the wheel and direct their vehicles onto the public roads.

Anyone who is deemed to be irresponsible will be quoted higher rates for their required liability coverage and optional collision coverage because they are believed to be highly likely to cause or be involved in a car collision.

Why Comprehensive Coverage May Be More Expensive

Those who are purchasing comprehensive coverage will be quoted a higher rate if they live in an area with a high crime rate. Where people park their cars will even play a role in how much the premiums will be.

Comprehensive coverage is what will pay to repair a vehicle if it is vandalized or damaged by a fallen tree or in a storm.

A car that is parked on the street at night or in the driveway will be vulnerable to vandalism if it is in a high crime area; it will also be more easily damaged in a storm or by a falling tree.

These were some of the many factors that determine your car insurance rates.

How High Risks May Find Lower Rates

Because every auto insurance company is different, those who often pay the highest rates have the chance to find lower rates if they compare quotes. Right on this website, they can enter their zip codes and receive several free quotes.

When people compare quotes, even the highest risks find low rates. Enter your zip code in our comparison tool below for FREE car insurance quotes that you can compare.

References:

  1. https://www.nationwide.com/car-insurance-policy.jsp
  2. https://www.allstate.com/tools-and-resources/car-insurance/ask-agent-premium-deductible-limit.aspx
  3. https://www.esurance.com/info/car/marriage-and-car-insurance
  4. https://www.allstate.com/tools-and-resources/car-insurance/liability-car-insurance-cover.aspx
  5. https://www.progressive.com/glossary/comprehensive-and-collision/