Your insurance quote is based off of a number of different factors. Together, these make up your insurance rate. Just like with credit, you want to have a high insurance score for better prices. The following is simply a summary of what is calculated in your insurance rate.


Younger, newer drivers are much higher risk as they don’t have the experience older drivers have. They are also more prone to accidents because of their lack of experience. As a driver gets older and they are at less risk for accidents, their insurance rates will decrease.


The type of coverage you need on your car will affect your insurance rate. If you have full coverage, your premium is going to be higher. Where as someone who chooses Personal Liability and Property Damage (PLPD) is going to have lower premiums.

Daily vs. Luxury Driver

Drive your car every day everywhere? This can be more costly because of the wear and tear on your where. Where as driving a car for pleasure is going to cost less. Most people simply drive their cars to work which falls between pleasure and business use.

Insurance Score

Your insurance score is the same idea as your credit score. It’s an indicator of the chances you might file a claim and how much money you’ll cost your insurance company.


Believe it or not, women statistically have less accidents than men so their insurance rates are lower, by nearly 10%!

Where Do you Live?

The area in which you live is rated on a scale to give insurance companies an idea of what type of area you live in. Do you park on the street or in a garage? Is your area known for a lot of crime? In more densely populated areas where more cars are present, you’re more likely to end up in an accident. As a result, city rates tend to run higher.

Marriage Status

Remember when we said women tend to get in less car accidents? Due to this, the insurance rating factor is geared towards men. Men who aren’t married tend to end up in more accidents then married men.

Liability Limits

What you choose on your liability limits will also affect your insurance rates. Liability limits are the dollar amount limits your insurance company will pay for the other party if an insurance claim is made for which you are liable.

Driving Record

High risk drivers are going to have higher rates because of the number of claims they have had to take out over a certain period of time. This also includes any speeding tickets you may receive.

Type of Vehicle

The more expensive your car is, the higher your insurance rate. You should note this is only if you request physical damage coverage. Without requesting this coverage, your insurance company is not responsible for repairing or replacing your car in the case of an accident.


If you choose a higher deductible, you’re insurance rate will decrease. If you get into an accident and need any repairs, you will be paying a large chunk of the cost out of pocket. Insurance companies like those who choose high deductibles because it means you are more willing to self-insure your car than depend on your insurance company to pay for the costs.


Curious about your own insurance rate? Call your Compass Agent today and we’ll walk you through it!