Key facts
| Fact | Detail |
|---|---|
| Factor with the biggest influence, according to the NAIC | How often claims happen (claim frequency) |
| Fatal crash rate per mile, drivers 16–19 (2022) | 7.5 per 100 million miles |
| Fatal crash rate per mile, drivers 30–59 (2022) | 1.9 per 100 million miles |
| Fatal crash rate per mile, drivers 70 and older (2022) | 3.0 per 100 million miles |
| Average spent per insured vehicle (2023) | $1,281 a year |
Check your car insurance price factors
How insurers set a price
An insurer first decides whether to accept you (underwriting) and then works out a price (rating). The National Association of Insurance Commissioners (NAIC) says claim frequency has the greatest influence on rates, and lists driving record, where you live, age and gender, marital status, prior insurance history, how much you drive and the make and model of the car among the factors used. Each insurer combines these in its own rating plan, which is filed with and overseen by your state insurance department, and some states restrict certain factors.
Why age matters so much
Insurers charge more for drivers with higher crash risk, and age is one of the clearest signals. Crash data from the Insurance Institute for Highway Safety show the pattern:
| Driver age | Fatal crash involvements per 100 million miles (2022) |
|---|---|
| 16–19 | 7.5 per 100 million miles |
| 20–29 | 5.1 per 100 million miles |
| 30–59 | 1.9 per 100 million miles |
| 60–69 | 1.6 per 100 million miles |
| 70 and older | 3.0 per 100 million miles |
Risk is highest for teens, lowest in middle age and rises again for the oldest drivers. See how age affects car insurance.
Factors you can change and factors you cannot
| Factor | Can you change it? | What to do |
|---|---|---|
| Coverage and limits | Yes, at any renewal | Match coverage to your car's value and what you need to protect |
| Deductible | Yes | Choose the highest deductible you could pay tomorrow |
| Miles driven | Sometimes | Ask about low-mileage or pay-per-mile programs |
| Telematics | Yes | Try a safe-driving program if you drive gently and rarely late at night |
| Driving record | Over time | Avoid new tickets; violations usually stop counting after several years |
| Credit history | Over time | Where credit is allowed, paying bills on time helps |
| Vehicle | When you buy | Check repair costs and theft rates before buying |
| Age and location | Rarely | Compare quotes; insurers weigh these differently |
Credit-based insurance scores
Where state law allows it, many insurers use a credit-based insurance score, which is built from your credit report but is not the same as a lending score. The Federal Trade Commission's report to Congress found these scores are effective predictors of risk. Some states ban or restrict their use; see how credit affects car insurance.
Using your results
Treat the results as a to-do list. Start with the factors you can change today, especially coverage, deductible and discounts, then compare quotes from several insurers for exactly the same coverage. Prices for the same driver can differ a lot between companies because each weighs the factors differently. Our guide to shopping at renewal shows how to compare like for like.
Frequently asked questions
What is the biggest factor in car insurance prices?
According to the NAIC, claim frequency has the greatest influence on rates. In practice your driving record, age, location and the coverage you choose usually move the price the most.
Why is car insurance so expensive for teenagers?
Teen drivers crash more often per mile than any other age group, so insurers expect more and larger claims from them.
Does my ZIP code really change my price?
Yes. Insurers price by area because claims, theft, traffic and repair costs differ from place to place, and urban areas tend to have more claims than rural ones.
Can a telematics program raise my price?
It depends on the program. Some only give discounts, while others can raise your price based on how you drive. Ask before you enrol.
Does a higher deductible always lower my premium?
It usually lowers the premium for collision and comprehensive. Use the deductible chooser to see whether the saving is worth the extra risk.
Why do two insurers quote such different prices?
Each insurer has its own rating plan and weighs factors differently, so comparing several quotes for the same coverage is the best way to find a lower price.
Sources
- NAIC, Auto Insurance consumer guide rating factors insurers use and the influence of claim frequency
- Federal Trade Commission, Credit-Based Insurance Scores: Impacts on Consumers of Automobile Insurance (2007) credit-based insurance scores as risk predictors
- IIHS, Fatality Facts 2024: Teenagers as of October 28, 2026
- NAIC, 2022/2023 Auto Insurance Database Report as of February 13, 2026
Last reviewed by the StateCover Guide editorial team. See our editorial policy. Spotted an error? Tell us.