Factors That Affect Rates

Auto insurance rates are based on a variety of
factors. The premium you pay reflects factors
such as your age, gender, “insurance score” and
driving record. Individual companies may differ
in how they calculate premiums, but the major
factors are fairly universal.

YOUR AGE
Statistics show that, as a group, drivers under age
30 have more accidents per mile driven than the
general population. Thus, young drivers are
charged higher rates, as are families with young
drivers in the household.

YOUR GENDER
Young men are involved in more accidents per
miles driven than any other population group.
The difference is especially pronounced for male
drivers under 30. Washington law allows
insurance companies to charge on the basis of
gender and age where there is proof that
differences in risk exist.

YOUR CAR
The more expensive your car, the more you will
pay. Because sports cars and high performance
cars tend to be involved in more accidents, cost
more to repair and are more likely to be stolen,
they cost more to insure.

YOUR LOCATION
Heavily populated areas tend to have a higher
number of accidents. The law allows a company
to calculate your rate based upon your address,
even though you may drive to different areas.

DRIVING PATTERNS
The more you use your car the higher your rates.
A car used to commute 15 or more miles to and
from work everyday has an increased risk of being
involved in an accident compared to a car that is
driven once a week.

YOUR DRIVING AND CLAIMS HISTORY
Most companies apply a surcharge to drivers who
have been involved in an accident or who have
been convicted of multiple traffic violations.
Also, the more claims you make, the higher your
rates are likely to be.

INSURANCE SCORE
An insurance score is similar to a credit score. In
general, the better your credit, the lower your
insurance premiums will be. Some states have
now passed laws that limited how certain parts
of your credit report can be used to calculate
insurance premiums.