Driving Record, Age and Vehicle Type Are
Major Considerations
LOS
ANGELES, May 15, 2025 /PRNewswire/ -- Prices for
just about everything are on the rise these days, and
unfortunately, that includes car insurance. Now more than ever,
consumers are looking for ways to lower their auto insurance
premiums. However, in order to maximize these savings, it's
important to first understand the different factors that insurance
providers look at when setting their policyholder rates.
While there are a variety of factors that affect car insurance
rates, your driving record is one of the most influential.
"Unlike other factors, your driving record is one that you have
some control over. Drivers with a clean motor vehicle record and no
at-fault accidents typically get the lowest car insurance rates,"
said Kevin Quinn, Vice President of
Auto Claims for Mercury Insurance. "Other key factors that affect
your rates include your age, the vehicle you drive and where you
live, among others."
Here's a detailed breakdown of the main factors that generally
affect car insurance rates:
- Driving record: Insurance companies use a driver's past
as a predictor for future risk. Even just one speeding ticket or
accident could raise your rates. Insurers typically look at your
record from the last three to five years, but more serious
violations like a DUI or multiple speeding tickets might follow
your record for longer.
- Age: Age is another big factor that affects insurance
rates, especially for younger drivers. Data indicates that
teenagers are riskier drivers, so they often pay more for auto
insurance. As drivers become more experienced, their insurance
premiums tend to decrease, with the lowest rates generally afforded
to those in their mid-50s before rising again for seniors.
- Location: States with laws that mandate more coverage
types and/or higher coverage limits will likely have higher auto
insurance costs — even certain ZIP codes can have higher rates. "If
a policyholder lives in an area that is more prone to vandalism,
like a big city for example, car insurance premiums will be higher
because the possibility of that policyholder filing a claim is
greater," added Quinn.
- Vehicle type: Before driving that shiny new car off the
lot, think about insurance for it. There are several types of cars
that generally cost more to insure, including high-end sports cars,
luxury cars and some electric vehicles. This is due to their parts
costing more to repair or replace after an accident. An EV battery,
for example, can cost thousands of dollars to replace if damaged.
Generally, cars with strong safety ratings, lower repair costs or
advanced safety features cost less to insure.
- Credit score: Many drivers are likely unaware that their
credit score is fair game for insurance companies when setting
rates. Data indicates that drivers with poor credit file more
claims than do drivers with better credit — and more expensive
ones, too. However, a handful of states — including California, Hawaii and Massachusetts — have outlawed or restricted
the use of credit scores as a rating factor.
"We understand that in these uncertain economic times, many are
looking to reduce their auto insurance spend. Therefore, it is best
to focus on the factors that you can control. Choose an affordable
vehicle with good safety ratings. Research average insurance rates
in different ZIP codes before planning a move. And, most
importantly, be attentive and follow the law when behind the
wheel," said Quinn.
For more information about auto insurance and lowering your
rates, visit Mercury's blog.
About Mercury Insurance
Headquartered in Los Angeles,
Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier
offering personal auto, homeowners, and renters insurance directly
to consumers and through a network of independent agents in
Arizona, California, Georgia, Illinois, Nevada, New
Jersey, New York,
Oklahoma, Texas and Virginia, as well as auto insurance in
Florida. Mercury also writes
business owners, business auto, landlord, commercial multi-peril
and mechanical protection insurance in various states.
Since 1962, Mercury has provided customers with tremendous value
for their insurance dollar by pairing ultra-competitive rates with
excellent customer service, through nearly 4,100 employees and a
network of more than 6,500 independent agents in 11 states. Mercury
has earned an "A" rating from A.M. Best, as well as "Best Auto
Insurance Company" designations from Forbes and Insure.com. For
more information visit www.MercuryInsurance.com or follow the
company on Twitter or Facebook.
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SOURCE Mercury Insurance