What Affects Your Auto Insurance Premiums?

October 27th, 2017 by

Whether you love it or would rather not think about it, auto insurance is a necessity. Beyond the protection it offers you, your passengers, your vehicle, and the individuals you share the roads with, auto insurance is required by law in the state of Minnesota – and other states as well

While it’s likely you already know if your state does or doesn’t require insurance, you might not be aware of what variables affect your auto insurance premiums. Those variables are what I’ll be covering below. 

Variables that Affect Auto Insurance Premiums

Type of Coverage

What Affects Your Auto Insurance Premiums?Liability insurance is less expensive than full coverage*, but that’s because you qualify for fewer benefits under liability. Also, if you have the option to set your own deductible amount, what you choose will figure into your insurance expenses. 

*It’s worth noting that a financed vehicle must have full coverage until the vehicle has been paid in full. Once this occurs, it’s up to the owner to decide what level of coverage the vehicle requires. 

Vehicle Type

Your vehicle has a lot to do with how your insurance premiums are set. Vehicles with high safety ratings and anti-theft features oftentimes qualify for lower insurance expenses. Vehicles that are flashy and more likely to be damaged or stolen raise insurance costs. 

Driver Age

While younger drivers may see this as unfortunate, that doesn’t make it any less true. From the perspective of auto adjusters, younger drivers translate into less time spent on the road and less experience driving. That lack of experience behind the wheel can cause your insurance premiums to rise. 

Driving Record

While being a driver for a longer period of time will help you lower your premium expenses, some drivers collect a bit of a driving record during those years. If you have a few auto accidents on your record, expect to pay a higher premium than those who don’t.


All of the factors listed above work together to determine how much your auto insurance premium will be. Changing insurance costs are an important thing to consider when purchasing a vehicle, as they can affect your budget and how much car you can afford. If you’re concerned about how a vehicle purchase may or may not affect your premiums, be sure to discuss it with your vehicle salesperson.  


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