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Factors that Influence Car Insurance Rates

If you're shopping for insurance for your car, truck, or RV, it’s important to understand that factors such as coverage options, deductibles, and discounts affect your policy cost.

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Why safer cars aren't always less expensive to insure

You'd think that safer cars would mean lower car insurance costs, but as reported by NPR, advanced safety features that reduce crash risk can actually drive premiums up.

Safety features like autonomous braking and lane departure warning in newer cars can reduce the number and severity of injuries, but they also make vehicles more expensive to repair when accidents happen. External mirrors, fenders and bumpers house sensors that help to avoid crashes–and carry higher repair costs than their conventional counterparts.

There are other factors that determine how much you pay for auto insurance. For example, the total annual mileage you drive, 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.


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.


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.


Drive Safe & SaveTM

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 Discounts

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.

See all available discounts

Simple Insights® by State Farm

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

The Real Costs of a Violation (Moving or Not)

The Real Costs of a Violation (Moving or Not)

Critical driving errors may end up draining your bank account & free time. States vary in how they punish violations and it’s helpful to know what’s at stake.

Auto Manufacturers Recalled a Record Number of Cars

Auto Manufacturers Recalled a Record Number of Cars

Know how to handle vehicle safety recalls.

What Affects Car Insurance Premiums

What Affects Car Insurance Premiums

What are the factors that affect car insurance premiums? Find out. Plus, how to lower car insurance rates.


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