Why auto insurance prices differ
Insurance pricing reflects an insurer's estimate of future claim risk and cost. Insurers do not necessarily use or weigh every permitted factor in the same way, which is why prices can vary even when the requested coverage is similar.
Driving history
Accidents, violations and other driving-history information may affect underwriting or rating, subject to state law and the insurer's rules.
Where the vehicle is kept
Location can matter because claim frequency, theft, repair costs, weather exposure and other loss patterns vary geographically.
Your vehicle
Vehicle value, repair costs, safety features, theft experience and other vehicle characteristics can influence the expected cost of claims.
How the vehicle is used
Annual mileage, commuting and other use information can be relevant to rating or eligibility for certain programs.
Coverage, limits and deductibles
More coverage or higher limits generally changes the insurer's potential obligation. Lower physical-damage deductibles generally shift more of a covered loss to the insurer.
Household and policy factors
Household drivers, prior insurance information, bundling, discounts and other permitted variables may also affect the final premium.
Prepared by the LowestPriceFinder Editorial Team using consumer guidance from insurance regulators and the NAIC. See our Editorial Standards & Research Policy.
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