The amount of risk that a motorist is perceived to pose to an automobile insurance company can fluctuate for a number of reasons, ranging from changes in a motorist’s information to shifts in the rating methods of individual insurers. Coverage providers charge vehicle owners based on the likelihood that they will file a claim in the near future, and many different details can be used to help determine a driver’s level of risk.

When companies rate vehicle owners, they typically take into account information such as a driver’s age, gender, marital status, location, driving record, and credit history. Each of these points provides statistical insight into how likely someone is to take risks or file a claim while behind the wheel. For example, studies have shown that men are involved in more accidents annually than women, and motorists between the ages of 16 and 25 are greater accident risks than drivers of any other age group.

Individuals who wonder how much is car insurance going to cost based on their own details are encouraged to find out by shopping around. Just like with other products, people should compare prices from several different companies before making a purchase. To do this, car owners can contact several companies directly, or use fast and efficient resources available online that can produce dozens of sample rates at once from a single website.

Impacting How Much Insurance Costs

Although credit history is listed as one of the qualities commonly used to rate vehicle owners, in many states this practice is heavily regulated, and in three states it’s banned altogether. For example, the Washington State Office of the Insurance Commissioner says that state limits the use of credit scoring by not allowing insurers to deny someone auto protection based solely on their financial information. While some consumers and government officials believe looking at credit history to be either irrelevant or potentially biased, many insurers feel that a person’s fiscal habits directly relate to their likelihood of filing claims. Though they may not know it, drivers can help control coverage costs by maintaining sound financial practices.

But because prices are largely based on perceived risk, one of the most effective ways to get cheaper coverage is to maintain a clean driving record. Automobile accidents and moving violations usually only stay on a person’s driving record for three years. If vehicle owners can avoid filing claims or receiving moving violations for that long, their rates likely will decrease considerably.

In many states, motorists can take pre-approved driver training courses to better their abilities behind the wheel and potentially cut coverage costs. Often, insurers will award special discounts to drivers who complete these courses.