Two neighbors with the same car can pay very different prices for the same coverage. That is not an accident. Insurers price each policy from a set of rating factors, and five of them do most of the work. Knowing what they are tells you which parts of your rate you can change and which ones you can only shop around.

1. Your driving record

This is the factor insurers weight most heavily, and the one most in your control. A clean record earns the lowest tier. An at-fault accident, a speeding ticket or a DUI moves you into a higher tier for three to five years, depending on the state and the carrier. Carriers also look at claims you have filed, including ones where you were not at fault, because a history of claims predicts more claims.

2. Your age and experience

Drivers under 25 have more accidents than experienced drivers, so they pay the most, and adding a teenager to a policy is the single biggest jump most households ever see. Rates usually fall through your 30s, 40s and 50s and then start to climb again for drivers in their 70s. A licensed driver who has been on the road for years but never held a policy in their own name can also pay more at first, because the carrier has no history to price from.

3. Your credit

In most states, insurers use a credit-based insurance score, built from your credit report, because it has been shown to predict how likely a driver is to file a claim. A strong score can be worth hundreds of dollars a year. A weak one can cost as much as a ticket. A few states limit this: California and Massachusetts bar insurers from using credit at all, Hawaii and Michigan bar it for setting rates, and Maryland, Oregon and Utah restrict how it can be used. Everywhere else, improving your credit is one of the quieter ways to lower what you pay.

4. Where you live

Your ZIP code stands in for the risks around your car: theft, vandalism, collision frequency, repair costs, weather and how often local claims end up in court. Drivers in cities pay more than drivers in small towns and rural areas, and moving across a county line can change a quote by more than a new car would. The same address is also priced differently by different carriers, which is why one insurer's expensive ZIP code is another's average one.

5. What you drive

The cost to insure a car follows the cost to repair or replace it, how often that model is stolen, how it performs in crash tests and how much damage it does to other vehicles. A large SUV can be cheap to insure for injuries and expensive for property damage. A sports car is expensive for both. Safety features, anti-theft equipment and, increasingly, the price of the sensors behind your windshield all feed the number.

What else counts

  • How much you drive. More miles means more exposure. Commuting and business use cost more than pleasure use, and several carriers now offer lower rates for low mileage or for letting an app score your driving.
  • The coverage you choose. Higher liability limits, lower deductibles, and add-ons like rental reimbursement and gap coverage all raise the premium. A higher deductible is the fastest way to lower it.
  • Your insurance history. A gap in coverage, even a short one, is priced as a risk. Staying continuously insured, even with a minimum policy, protects your rate.

Why the same driver gets different quotes

Every carrier weights these factors differently. One may forgive a first accident, another may not. One may charge a teenager double, another triple. Because the weights are proprietary and change from year to year, the only way to know which carrier prices your profile best right now is to ask several of them at once. Shop around for at least three new quotes every six months, and always before you renew, move, add a driver or replace a car. If you want a sense of where you stand first, the auto insurance calculator estimates a typical premium for your profile, and the insurance hub covers the coverage choices above in more detail.

Source for the rating factors: Insurance Information Institute, What determines the price of an auto insurance policy? State credit rules as summarized by Experian (March 2025); check your state insurance department for current rules.