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. But they aren't the only factors used to determine how much you pay for auto insurance.

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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 a city or town with a high population, your auto insurance rate will probably be higher than if you lived in the suburbs or a rural area.

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. Women have fewer accidents than men, and married people are safer drivers than those who are single.

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.

Things You Can Do to Save Money on Auto Insurance

  • Drive a different, safer vehicle
  • Take a defensive driving course
  • Drive fewer miles
  • Install a theft deterrent device
  • Have less coverage on older vehicles
  • Increase your deductibles
  • Collect every discount you may be eligible for
Of course, you can get in touch with a State Farm agent if you'd like to discuss more ways to save money on auto insurance.


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
Dallas, TX