Costs and Saving Money

What affects the cost of my auto insurance?
There are many factors that may affect the cost of your auto insurance, including:

• Amount of coverage
• Age of the drivers
• Make and model of your cars
• Safety features of the car (like air bags and anti-lock brakes)
• Driving records of the drivers
• Mileage on the car and where you drive
• Years of driving experience
• Number of recent accidents and tickets
• Whether you have been to driving school
• Credit History

Why does insurance cost so much if you're under 25? People under 25 tend to get in more accidents than older drivers, so insurance companies believe they are riskier and charge them higher rates. Most insurance companies assume that as people mature they become better drivers, so insurance companies lower the rates when you turn 25.

I recently moved to the United States, and I had an excellent driving record in my country. Why are my auto insurance rates so high?
Since you do not have a driving record in the U.S., your premiums will be high because insurance companies can't easily verify your driving record. You will have to drive in the U.S. for a few years to develop a good record and get lower rates. So be prepared to pay high rates now, but once you've been driving for about a year, shop around for other auto insurance to see if you can get a better deal (and then try again a couple of years after that). Get information on shopping around for auto insurance.

Why does my insurance go up if I have an accident or get a ticket (even if the accident wasn't my fault)?
Your driving record is one of the main factors in how high or low your rates are for auto insurance. Your record is the best way for the insurance company to predict what your driving will be like in the future.

And statistically, people who have one accident are more likely to have more, whether they are determined to be at fault or not. Since your premium is based on the level of risk you present to the insurance company, after an accident you will be seen as a bigger risk and therefore have to pay more money.

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