What Really Impacts Your Insurance Price

by Maddi Butler

Traffic Violations

If you’ve never received a speeding ticket before, the cost of your policy may not increase at all. However, if you receive multiple tickets within a three-year period, your policy will probably increase. Fortunately, these increases don’t usually last forever, and speeding tickets generally eventually fall off of your driving record.

Young Drivers

According to a study by the California DMV, teenagers are more than twice as likely (2.5 times more, in fact) to be involved in a car crash than 20-24-year-olds. Because young drivers are so much more at risk, they’re subject to higher insurance rates. Older, more experienced drivers tend to have lower rates. Some insurers offer discounts to eligible students as a way to combat high rates for teens.

Why You Drive

Drivers who use their vehicles for pleasure or commuting often pay less than people who drive for things like business or ridesharing services. Some companies charge more if you drive your car for business purposes, and some may require you to hold a commercial policy.


As we said above, more experienced drivers typically experience a price drop in their insurance cost as they get older. Rates usually either decrease or at least stabilize until about age 75.

At-Fault Accidents

While most at-fault accidents increase your insurance cost, they usually fall off your record. Accidents don’t always raise your rate, and some insurers will forgive an accident if you’re part of their loyalty program.


Your zip code affects your cost as well. Drivers in heavily populated areas are considered at higher risk, which increases the cost of comprehensive and collision coverage.

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