Car insurance costs and money-saving tips

You’ve probably figured out that the world of car insurance is — well, let’s just say it’s complex. When you apply for insurance, a company is going to look at many factors.

Type of car: Generally, the more expensive the car, the more you pay for car insurance.

Location: Because of the higher frequency of issues like theft, accidents, and vandalism, urban drivers may pay more than those in rural areas.

How much the car is driven: People who drive a lot for work or commute a long distance usually pay more than those who drive less.

Age, sex and marital status: Accident rates are generally higher for drivers under 25, especially men, which often means higher insurance prices. Married drivers may pay less.

Driving record: Drivers with poor driving records usually pay more for insurance than people who have been accident-free for several years.

Coverages: Insurance policies consist of a variety of coverages. Generally, the more coverage you buy, the higher the cost.

Credit history: Certain credit information has been shown to be a very effective predictor of future insurance claims. In most states, credit information is one factor used to determine the cost of your car. Maintaining good credit may save you money on your car insurance.

Deductible: A deductible is the part of a loss that you’ve agreed to pay with your own money. Generally, the higher the deductible, the lower your premium.

How can I save money?: There are several things you can do to try saving money on car insurance:

Buy a cheaper car. Generally, the more expensive the car, the more expensive it is to insure.

Do your safety research. Insurers often increase premiums for cars that are a greater risk for damage or occupant injury.

Ask about discount. Typical discounts include those for good students, insuring multiple vehicles, accident-free driving and more.

Drive less. Consider joining a car pool, or take alternate transportation when possible. Mileage reduction may help lower your premiums.

Drive carefully. Insurers love a clean driving record.

Consider multi-line. Many insurers will offer discounts if you use them for multiple policies.

Note: Car insurance premiums are determined based on state-approved rating factors.


Because insurance protection is a contract, any coverage descriptions in this article are general only and are not statements of contract. All coverage are subject to all policy provisions, including applicable endorsements.

The information in this column was obtained from various sources not associated with State Farm. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. These suggestions are not a complete list of every loss control measure. The information is not intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. Nor is it intended to effect coverage under our policy. State Farm makes no guarantees of results from use of this information.


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