Factors influencing 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 may carry higher repair costs than their conventional counterparts.

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 past few years, your auto insurance rate will be higher than if you had a spotless driving record. Safe driving can pay off.

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 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. That’s not all. Your annual mileage, 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.


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 and other potential savings

Check with a State Farm® agent to find out if you’re eligible for one of the many discounts or other potential savings State Farm offers to help you save money on auto insurance.

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Browse numerous articles from Simple Insights® on tips from what we’ve learned in the nearly 100 years we’ve been insuring drivers like yourself.

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Customers may always choose to purchase only one policy, but the discount for two or more purchases of different lines of insurance will not then apply. Savings, discount names, percentages, availability and eligibility may vary by state.

Rates, rating factors, and coverages vary by state.

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

State Farm County Mutual Insurance Company of Texas
Richardson, TX