Factors That “Drive” the Cost of Car Insurance Up, and the Discounts That Lower It
October 23, 2022
Candace J. Dixon
What you pay for car insurance has to do with more than just finding insurance companies with the lowest rates. It also depends on your driving history and habits, including how many miles you drive annually, your insurance history including if you’ve had gaps in coverage and the number of claims you filed, and some other factors you may not even think about:
These are some more things that affect car insurance rates:
Your credit score overall. Insurance companies use a credit-based insurance score to rate their customers. Policyholders with good credit scores typically pay lower insurance premiums, and people with not-so-great credit scores pay more.
Some states, however, have made this practice illegal. Do you live in one of them? If so, your credit score is not a factor. Your rates will be the same regardless of your credit score if you are lucky enough to live in California, Hawaii, Massachusetts and Michigan.
Where you live, both state and local. Car insurance is regulated by the states, so some states are more expensive than others depending on what type of coverage they require. Even moving over one…
