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What Affects Your Auto Insurance Rate

Vehicle Age & Type

Newer vehicles cost more to insure due to higher repair and replacement costs. Sports cars and luxury vehicles also carry higher premiums than sedans or minivans.

Location

Urban areas have higher rates due to more traffic, theft, and vandalism. States like Michigan, Louisiana, and Florida have some of the highest rates nationally.

Driver Age & History

Drivers under 25 pay significantly more due to higher accident rates. A clean driving record can save you 20-40% compared to drivers with accidents or violations.

Credit Score

In most states, insurers use credit-based insurance scores. Drivers with poor credit may pay 40-65% more than those with excellent credit for the same coverage.

Coverage Level

Full coverage (comprehensive + collision + liability) typically costs 3-4x more than liability-only coverage but protects your vehicle from damage and theft.

Market Trends

Insurance rates have been rising due to inflation in repair costs, more expensive vehicle technology, and increased severe weather claims affecting the industry.

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