AUTO

Factors that Influence Car Insurance Rates

If you're shopping for insurance for your car, truck, or RV, you may already know that coverage options, deductibles, and discounts play a major role in the size of your premiums.

Why Safer Cars Aren't Always Less Expensive to Insure

You'd think that safer cars would mean lower car insurance costs, but as The Wall Street Journal reported in August, 2017, "New cars loaded with high-tech crash-prevention gear are having a perverse effect on car-insurance costs: They are soaring."

Safety features in newer cars can reduce the number and severity of injuries, but they also make vehicles more expensive to repair when accidents happen. Additionally, lower gas prices in recent years are encouraging more drivers to take to the road (NBC News, 2016).

There are other factors that impact how much you pay for auto insurance, too. For example, changes in your driving record, marital status, your age, and/or moving to a different neighborhood can cause you to pay more for car insurance.

How You Drive

Driving History

There are plenty of reasons to drive safely, but saving money is an especially good one. If you've had speeding tickets or accidents within the last few years, your auto insurance rate will be higher than if you had a spotless driving record. Safe driving pays off – in more ways than one!

Driving Activity

A policyholder who drives only a few miles a week will likely pay less for auto insurance than one who drives longer distances.

Your Vehicle

Safety Rating

Some vehicles are safer and cost less to repair than others. Insurance companies collect data about each make and model and use it to determine how much to charge its customers.

Vehicle Size

In an accident, larger vehicles tend to fare better – and keep occupants safer – than smaller ones.

Anti-Theft Devices

If your car has an alarm, a tracking device to help police recover it, or another theft deterrent, it's less attractive to thieves, and less expensive to insure, too.

Who You Are

Where You Live

If you live in an area with above average traffic, your auto insurance rate could be higher than if you lived in an area with less traffic congestion.

Age, Gender and Marital Status

Drivers between the ages of 25 and 65 tend to have fewer accidents than those who are younger or older. In addition, studies show that certain individuals have fewer accidents.

Credit History

Studies show a connection between credit characteristics and insurance claims, so many insurance companies use "Credit-Based Insurance Scores" to help determine rates (not applicable where prohibited by law).

Your Policy Choices

Coverage Options

Some insurance – like Liability Coverage – is required by law in most states. The rest is up to you. Your insurance choices and coverage amounts have a major impact on how much you'll pay.

Deductibles

A deductible is the amount you pay before your insurance company covers you. You can lower your auto insurance rates by setting a higher deductible, but you'll pay more out-of-pocket when you make a claim.

Discounts

State Farm™ offers many discounts to help you save money on auto insurance. Get an auto insurance quote or find a State Farm agent to discuss which discounts you might be eligible for.

Discounts

Drive Safe & Save™

Enroll in Drive Safe & Save and we'll use information from your smartphone or your vehicle's OnStar® or SYNC® communication service to calculate your discount. Safe drivers save more with Drive Safe & Save.

Steer Clear®

If you're a new driver or under 25 years of age without any at-fault accidents or moving violations within the past three years, you could qualify for Steer Clear. You could save as much as 15% while learning to become a better, safer driver.

Multiple Line Discount

Save up to 17% if you have homeowners, renters, condo, or life insurance in addition to vehicle insurance. Speak with a State Farm agent to see if you're eligible or to learn about additional cost-saving discounts.

Accident-Free Discount

You qualify for this accident-free discount when your car, or the one it replaced, has been insured by State Farm for at least 3 continuous years without a chargeable accident.

Multiple Auto Discount

If two or more vehicles in your household are insurance by State Farm and owned by related individuals, you could save as much as 20%.

Good Student Discount

You can save up to 25% just for getting good grades! And the savings last after you graduate from college, until you turn 25.

Helpful Resources From Simple Insights®

Simple Insights® by State Farm

Take advantage of what we've learned through the years in Simple Insights®

The Ins and Outs of Rideshare Driver Coverage

Understand your new coverage needs when becoming a rideshare driver.

How To Best Maintain Your Favorite Two-Wheeler

Proper motorcycle maintenance advice.

How to Jump-Start a Car

A step-by-step guide to jump-starting a car battery.

Disclaimer

Rates, rating factors, and coverages vary by state.

OnStar® is a registered trademark of OnStar, LLC.

SYNC® is a registered trademark of Ford Motor Company.

State Farm Mutual Automobile Insurance Company
State Farm Indemnity Company
Bloomington, IL

State Farm County Mutual Insurance Company of Texas
Richardson, TX