 TITLE: How Much Does Car Insurance Cost? CONTENT: Factors That Affect Car Insurance\n---------------------------------\nThere are several primary elements insurance companies look at to decide your premium when you apply for a car insurance quote.\n### State and Region\nCar insurance is regulated at the state level, and rates can vary by state and even by ZIP code. In other words, the exact location of your residence can have a major impact on your monthly premiums.\nFor instance, the incidence of vandalism, theft and accidents is higher in urban areas than in rural areas. So you can generally expect to pay more if you live in a city versus someone who lives in a small town.\n### Driving Record\nTickets and other violations can spike your car insurance rate because they're a sign that you may be a risky driver.\nAccidents, primarily when you're at fault, can also cause your premium rates to balloon. In some cases, you can see a rate increase after an accident even if you were not at fault for the accident but still filed a claim. That's especially the case if you've filed other claims in the past.\n### Vehicle Type and Use\nThe type of car you drive is a key consideration for insurers. For example, cars that are statistically more likely to be stolen may carry higher rates than others that are further down the list. And the more expensive the car, the more expensive the potential claims, which makes it more likely that you'll have a higher monthly premium. Insurers use the car's vehicle identification number (VIN) to assess its mileage, accident history and other factors to help determine your rate.\nHow you use the car is also important. You'll typically share how many miles you expect to drive each year and the primary usage. For example, if you have a long commute, you may be more likely to get into an accident than someone who primarily drives on the weekends for pleasure. Some insurance providers even ask you to install a GPS tracker on your car so your rates can be adjusted based on your driving habits.\n### Demographics\nInsurance carriers use a lot of data to determine risk profiles, including demographics such as age, gender and marital status. For example, single males under 25 are the most likely to get in an accident, and they can expect their insurance rates to reflect that elevated level of risk.\n### Type and Amount of Coverage\nIn most states, you must have at least a minimum level of liability insurance on your vehicle. Even where it's not required, you have to provide evidence that you're financially equipped to pay for damages if you cause an accident. If your car is financed, your lender may require you to carry a certain level of insurance above the legal minimum.\nBut beyond that requirement, the types of coverage you choose and how much will be reflected in your premiums. The main coverage types include:\n*   **Liability:** This protects you in an accident when you're at fault; it covers the cost of the damage to the other vehicle and the medical bills resulting from injury.\n*   **Collision and comprehensive:** Collision coverage provides protection if you're in an accident and not at fault. Comprehensive protection covers theft and damage that occurs in other ways, such as vandalism or natural disasters.\n*   **Uninsured\/underinsured motorist:** If you get in an accident where the other party is at fault and they either don't have insurance or their liability protection is insufficient, this coverage kicks in to help your policy bridge the gap.\n*   **Personal injury protection:** This covers medical bills for both you and others in your vehicle at the time of an accident, regardless of who's at fault. This type of insurance is not available in all states.\nSome insurers will also provide additional coverage types, such as rental car reimbursement and emergency roadside assistance.\nIn addition to the coverage amounts you choose, insurers will also consider your deductible. This is the amount you'll pay out of pocket before your coverage kicks in when you file a claim. A lower deductible means you're on the hook for less if something happens, but it will typically result in a higher monthly rate.\n### Credit History\nIn states where it's allowed, auto insurers also may use what's called a credit-based insurance score to help determine your rate. That's because credit scores can help predict the likelihood that you'll miss a premium payment or file a claim.\nKeep in mind, though, that insurers don't consider your credit history in California, Hawaii, Michigan or Massachusetts. Even in states where it is allowed, insurers typically can't use your score as the sole reason to raise your rate, deny you coverage or cancel or refuse to renew your policy.\n### Other Factors\nWhile not as prominent in the decision, there are several other factors that an insurance company may consider when determining your rate, including:\n*   Occupation\n*   Housing situation\n*   Previous insurance coverage (specifically, whether there's been had a gap in coverage)\n*   Driving experience\n*   Discount eligibility END