How Much is Car Insurance
Although there is no one answer to how much car insurance is, “it depends” is an often-cited response. That’s because insurance providers factor many pieces of information into a calculation that determines how much risk they’ll take to insure you. Each person is different with different needs and circumstances and so will pay different rates.
The premiums you pay are directly related to your risk. Simply put, the more risk factors you check off, the more you will pay in premiums, and if you are deemed too risky, insurance companies may not want to insure you at all.
Below, we’ll look at how some of the most common factors impact your car insurance premiums. Some of those factors will be out of your control, like your age or the area you live in. However, some are entirely within your control, like getting arrested while driving under the influence (DUI).
Here are some of the most common factors used by insurance companies to calculate your insurance premiums:
- State and zip code
- Driver’s age
- Driving record
- Type of car insured
- Credit score (prohibited in some states)