# Rating factors

> Rating factors explained: the details insurers use to price car insurance, from driving record and garaging location to the car you drive, and the limits.

Canonical page: https://mail.statecover-guide.com/glossary/rating-factors/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

Rating factors are the facts about you, your car and how you drive that an insurer uses to calculate your premium. Drivers with similar factors are grouped together and charged similar rates.

## Common rating factors

The NAIC calls this grouping class rating: setting rates for everyone who shares a given set of characteristics, such as demographics and location. The Texas Department of Insurance lists the factors most companies consider:

- **Driving record and claims history.** Accidents and tickets raise prices.
- **Where you keep the car.** City locations usually cost more, and rates can differ between ZIP codes in the same city.
- **The kind of car.** Collision and comprehensive cost most for luxury, high-performance and sports cars, and for cars that are expensive to repair.
- **How you use the car.** Commuting or business use costs more.
- **Credit.** Some companies use credit information.

## Limits on rating factors

States restrict how factors can be used. In Texas, for example, an insurer may not charge more because of race, color, religion or national origin. It may use age, gender, marital status, location or disability only if it can show a greater risk of loss, and it may not charge more based only on your credit score.

Rules differ by state, so a factor allowed in one state may be limited or banned in another.

## Related terms

- [Underwriting](https://mail.statecover-guide.com/glossary/underwriting/)
- [Premium](https://mail.statecover-guide.com/glossary/premium/)
- [Credit-based insurance score](https://mail.statecover-guide.com/glossary/credit-based-insurance-score/)
- [Garaging address](https://mail.statecover-guide.com/glossary/garaging-address/)
- Guide: [Driving record and car insurance](https://mail.statecover-guide.com/costs/driving-record/)

## Sources

- [Texas Department of Insurance, Auto insurance guide](https://www.tdi.texas.gov/pubs/consumer/cb020.html) — factors most companies consider and limits on using them
- [NAIC, Glossary of insurance terms](https://content.naic.org/glossary-insurance-terms) — definition of class rating