When you are looking for insurance, your quote will depend on many factors that insurance providers take into consideration. They do not always explain these factors to the consumers, so knowing them beforehand will prevent you from experiencing surprises in your insurance rates.

Low Liability and Low Coverage Limits

Liability limits signify the maximum amount your insurance provider agrees to pay in the event of an accident. Larger liability limits will save you money in the long run, because the insurance company will consider you a responsible insured and can offer you discounts on yearly premiums.


Depending on where you live, insurance carriers will decide your rates. More populated areas mean a bigger possibility of the insured making a claim or having his car stolen. So, if you live in a big city or in an area with high crime rates, you will have higher premiums compared to others.


Young people get higher insurance rates because the carriers do not deem them as responsible and settled down, until about the age of 35. Statistically, younger people have higher rates of accidents and are more likely to file a claim.

Credit History

Your credit history has a high impact on your insurance premiums. Insurance carriers believe that people who can manage their finances are more responsible in other spheres of life as well. Thus, people with good credit histories receive significantly lower insurance premium prices compared to those with poor credit records. Clean up any issues you might have on your credit record so that insurers give you lower rates.


A college education may give you discounts on insurance premiums, regardless of age. Moreover, some insurance providers even give discounts to the parents of young drivers who are good students with a high GPA, if they are on their parents’ policy.

Marital Status

Most insurance providers will consider giving a discount on premiums for married couples because statistically married couples are more responsible than non-married individuals.


Having a higher deductible will save you money not only in the event of a claim but also in the long-run. Insurance carriers respect the customers who are willing to shoulder more responsibility in the event of an accident, and they can offer you discounts on your rates over time.

Prior Insurance

Having a lapse in coverage or having no prior insurance will lead to higher premiums. If you carry insurance from a good agency, they will consider adjustments and giving you lower rates for maintaining a good record.

Previous Claims

The more accidents and the more claims you have on your record, the higher your insurance rates will be. If your insurance carrier considers you a high-risk customer, there is little to no chance they will give you low rates. Keeping that in mind, maintain a clean record and try to not make claims unless absolutely necessary.