Non-Driving Factors That Affect Auto Insurance Rates (2024)
There are many non-driving factors that affect auto insurance rates, such as age, gender, and ZIP code. For example, teen drivers pay nearly six times more for coverage than average. Below, we'll list factors unrelated to driving that can change your insurance premium and show you how to decrease your rates.
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Jeff is a well-known speaker and expert in insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading fina...
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UPDATED: Sep 13, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 13, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Some non-driving factors that affect auto insurance rates are age, gender, ZIP code, and more. Unfortunately, many of these factors are outside of the driver’s control, such as their location or age.
While the poor practices of insurers basing rates on socioeconomic and demographic factors have come under scrutiny, many insurers still use factors outside of a driver’s driving practices to determine rates. Read on to learn more about the non-driving-related factors that affect auto insurance rates. Start comparing quotes from the top providers by inserting your ZIP code into our free tool above.
- Age, gender, and ZIP code significantly affect how insurers calculate rates
- Teen drivers pay over $600/mo on average for car insurance
- Shop around with top providers to find the cheapest rates for you
Non-Driving Related-Factors That Insurance Companies Consider
Check out the following factors that can cause your insurance rates to go up or down, depending on the circumstances.
Age
Age is a common factor that insurers use to determine rates. While it may not initially seem related to driving, insurers base rates on age by arguing that the more experienced drivers are, the less likely they will crash.
Read More: Average Auto Insurance Rates by Age
The result is that older and younger drivers are often charged more, especially teenage drivers. However, part of this age discrimination is based on crash data, as insurers look at crash patterns amongst ages.
Some states, like California, have banned factors like a driver’s gender from being used, but many insurers still use discriminatory factors to determine rates. (Read More: California Auto Insurance)
Credit Score
Some insurers also use credit scores as a factor in their rate calculations. Drivers with a lower credit score will have slightly higher rates than drivers with a high credit score. Check out the table below to see how much you could pay for coverage based on credit score:
Full Coverage Auto Insurance Monthly Rates by Provider & Credit Score
| Insurance Company | Good Credit | Fair Credit | Bad Credit |
|---|---|---|---|
 | $135 | $165 | $245 |
 | $166 | $197 | $296 |
 | $116 | $136 | $203 |
 | $95 | $115 | $175 |
 | $140 | $161 | $269 |
 | $82 | $100 | $148 |
 | $177 | $226 | $355 |
 | $120 | $133 | $166 |
 | $109 | $138 | $206 |
 | $91 | $118 | $200 |
 | $120 | $155 | $230 |
 | $107 | $128 | $194 |
| U.S. Average | $123 | $148 | $226 |
The reason why insurers charge less for good credit is that drivers will be more likely to make payments on time if they have a high credit score.
Read More: How Credit Scores Affect Auto Insurance Rates
Education and Employment
A few insurers use education as a factor. Exactly how does your job affect your auto insurance rates?
An insurer may offer discounts for high school or college students with a high-grade average, which can help lower insurance costs.Travis Thompson Licensed Insurance Agent
Unfortunately, the downside is that some insurers look at drivers’ education level employment when calculating rates. Drivers who often travel longer distances for work or drive odd hours, such as contractors and ER doctors, might be charged slightly higher rates.
Homeownership Status
Drivers who own a home rather than rent may be offered slightly lower rates, primarily if they use an insurer’s home and auto insurance bundling options. Even if a driver doesn’t take advantage of a bundling discount, they may end up with lower rates simply for owning rather than renting.
This discriminatory practice by insurers isn’t readily apparent to most drivers as it usually only changes rates slightly, if at all, but it may be playing a role in your prices.
Read More: Does owning a home affect auto insurance rates?
Gender
While a few states have banned insurers from using gender to determine auto insurance rates, many insurers still practice this. Men often have higher rates than women, as crash data from sources like the Insurance Institute for Highway Safety (IIHS) often show men are more likely to be in a fatal crash than women.
However, many argue that basing rates on gender is outdated, and drivers should be charged based on their driving merit, not their gender. Compare auto insurance for men vs. women to learn more.
Marital Status
Marital status is a lesser-known factor that some insurers use. Married couples are more likely to receive a slightly lower rate than single drivers unless one of the couple has a poor driving record.
This is because insurers reason that two people can make payments on auto insurance, making them less likely to miss a payment. Some insurers may even offer a newlyweds discount for recently married drivers.
Read More: Auto Insurance Rates for Married vs. Single Drivers
ZIP Code
A driver’s ZIP code is one of the last and most crucial non-related driving factors that insurers use to calculate rates. There is a multitude of reasons behind this factor. A driver may live in an area prone to crime, making their car more likely to be stolen or vandalized. Or they may live in a busy area with a higher than average crash rate or an area with poor weather.
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Whatever the reason, insurers are guaranteed to use your ZIP code as a determining factor. It’s just one of the many reasons why it’s so important to shop around with the best auto insurance companies for your location.
Read More: Auto Insurance Rate Quotes by ZIP Code
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Understanding the Non-Driving Factors That Can Change Your Insurance Premium
Unfortunately, until more laws are passed banning discriminatory practices by insurers, there’s not much you can do about non-driving-related factors affecting your rates. However, while many non-driving-related factors are outside your control, driving safely and keeping a clean driving record can help you save on auto insurance.
Enter your ZIP code below to get started on comparing quotes from the top providers near you.
Frequently Asked Questions
Do non-driving-related factors affect auto insurance rates?
Yes, non-driving-related factors can affect auto insurance rates. While driving history and related factors (such as accidents and traffic violations) are significant considerations, insurance companies also take into account various non-driving factors when determining premium rates. These factors can include demographic information, location, credit history, vehicle type, coverage limits, and more.
What are some common non-driving factors that can impact auto insurance rates?
Several non-driving factors can impact auto insurance rates. Some common ones include:
- Age and Gender: Younger drivers typically have higher rates due to less driving experience, while males may have higher rates due to statistical risk factors associated with their demographic.
- Location: Insurance rates can vary based on the location where the vehicle is primarily driven and parked. Areas with higher population density or higher rates of accidents or theft may result in higher premiums.
- Credit History: In some jurisdictions and for certain insurance companies, credit history can be a factor in determining insurance rates. Individuals with lower credit scores may be considered higher risk and may be charged higher premiums.
- Vehicle Type: The make, model, age, and value of the vehicle can affect insurance rates. Vehicles with higher repair costs or a higher likelihood of theft may result in higher premiums.
- Coverage Limits and Deductibles: The coverage limits you select for liability, comprehensive, and collision coverage, as well as the deductible amounts, can impact your insurance rates. Higher coverage limits and lower deductibles typically result in higher premiums.
Can non-driving factors be used to determine insurance rates fairly?
The use of non-driving factors in determining insurance rates can be a subject of debate. While some argue that these factors provide additional insights into risk assessment, others believe that certain factors, such as credit history, may not directly correlate with driving ability or accident risk. Regulatory bodies and consumer advocacy groups continue to examine the fairness and impact of using non-driving factors in insurance rating practices.
Are non-driving factors the same for all insurance companies?
Non-driving factors considered by insurance companies can vary. Each insurance company has its own underwriting guidelines and rating algorithms, which may prioritize certain factors over others. Additionally, the regulations and laws governing insurance practices can differ by jurisdiction, which may influence the use of certain non-driving factors. It’s important to compare quotes from multiple insurance providers to understand how they evaluate and consider non-driving factors when determining rates.
Can I change non-driving factors to lower my insurance rates?
Some non-driving factors, such as the type of vehicle you own or the coverage limits you select, can be adjusted to potentially lower your insurance rates. However, factors like age, gender, and credit history may be more difficult to change in the short term. It’s advisable to consult with your insurance agent or representative to understand which non-driving factors you have control over and how they may impact your premiums. They can help you explore available options to potentially reduce your rates based on your specific circumstances.
Why do men pay more for car insurance than women?
Men pay higher rates for car insurance than women because they’re statistically more likely to get into accidents.
Why does location affect my auto insurance rates?
Each ZIP code has different risk factors related to traffic, crime, weather, and more.
Why do teens pay more for car insurance?
Teen drivers pay higher auto insurance premiums since they have less driving experience and are more likely to drive distracted.
Why does credit score affect auto insurance rates?
Insurers consider drivers with low credit as more likely to file claims and miss premium payments.
Why does education affect car insurance rates?
Statistically, educated drivers are less likely to file claims than drivers with lower levels of education. In addition, educated drivers may qualify for good student or alumni discounts.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading fina...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.