Factors that can raise car insurance premiums

Factors that can raise car insurance premiums

Your age, your marital status, and even where you live can affect the cost of car insurance, but there are other more obscure factors too.

Most people know that a single 18-year-old man who drives a Mustang GT and lives in downtown Miami will definitely pay more in car insurance than a 40-year-old woman who drives a Honda CR-V and lives in rural in South Dakota.

If that young man adds some traffic tickets to the mix, or an accident, insurance costs can soar.

There are less well-known factors that can make a big difference in cost.

If you use your car for business, driving multiple places during a typical week, you can get tagged with pricey commercial insurance rates. The same is true with a long commute or high annual mileage over 15,000 miles per year.

City dwellers pay more because they cope with more traffic and higher risks of theft, vandalism, and other crime.

A low credit score can increase premiums since insurers think credit scores indicate financial responsibility.

Lots of insurance claims can mark you as a high-risk driver.

Even state laws can raise premiums. States with higher minimum coverage requirements (Michigan's no-fault system, for example) can increase premiums. State peculiarities can make a difference. Louisiana, for example, stands out from other states for its abundance of law suits and plaintiff-friendly courts, according to The American Tort Reform Foundation.