Car insurance rates increase primarily due to factors that statistically indicate a higher risk of you filing a claim. Insurers analyze your driving record, personal details, vehicle type, and even your credit history to calculate your premium. A clean record and low-risk profile keep costs down, while incidents like accidents or traffic violations signal risk and cause your rate to go up.
Your driving record is the most significant factor. A single at-fault accident or a moving violation like a speeding ticket can increase your premium by 20% to 40% or more. More serious infractions, such as a DUI conviction, can easily double your insurance costs. Insurers view these events as strong predictors of future claims.
The vehicle you drive also plays a major role. Insurance is generally more expensive for cars that are costly to repair, attractive to thieves, or have high-performance capabilities. A sports car will always cost more to insure than a minivan. Newer cars with advanced safety features might qualify for discounts, but their higher value can lead to more expensive collision and comprehensive coverage.
Personal factors like your age, location, and credit-based insurance score are also heavily weighted. Young, inexperienced drivers under 25 pose a higher risk and face the highest premiums. If you live in a densely populated urban area with high traffic congestion and more frequent accident and theft rates, your cost will be greater than someone in a rural area. In most states, insurers use a credit-based insurance score, where a lower score can lead to a significantly higher premium.
| Factor | Typical Premium Increase (Approximate) | Notes |
|---|
| At-Fault Accident | 25% - 50% | Varies by claim severity and state. |
| Speeding Ticket | 15% - 30% | Higher increases for excessive speed. |
| DUI Conviction | 80% - 120%+ | Often requires an SR-22 filing. |
| Poor Credit History | 30% - 100%+ | Not used in CA, HI, MA, MI. |
| Adding a Teen Driver | 100% - 200% | The single largest increase for a family. |
| Lapse in Coverage | 10% - 30% | Seen as irresponsible by insurers. |
| Comprehensive Claim | 5% - 15% | (e.g., windshield repair, animal collision) |
Finally, your coverage choices and claims history directly impact your bill. Choosing lower deductibles increases your premium. Similarly, filing multiple claims within a short period, even for minor incidents, labels you as a high-risk customer and leads to substantial rate hikes.
