What Factors Determine the Cost of Auto Insurance? 

Age—If you’re 25 or younger, your risk for accidents and driving infractions is higher than that of older drivers, increasing your premium.

Driving record and credit history—If you’re a safe driver with good credit, you’ll pay less for your premium than if you have poor credit or you have accidents or violations in your driving history. 

Gender—If you’re a single man under the age of 25,  you have an increased risk of accidents and driving violations, which affects your premium. Females typically pay less unless they have a poor driving record.

Location—If you live in a city, your premium will be more because of a higher incidence of accidents, theft and vandalism. Also, if you use a parking garage, your risk of sustaining damage or theft is deemed to be lower.

Maintenance and repair costs—If your vehicle is untrustworthy or costly to repair, you may have a higher premium.

Make and model—Unsafe or expensive vehicles are more vulnerable to theft, damage and occupant injury, which may increase your premium. 

Marital status—Marriage and homeownership demonstrate responsibility and may result in lower premiums. 

Vehicle safety ratings—If your vehicle has a poor safety rating, determined by the National Highway Traffic Safety Administration, your premium may be more costly. 

Bodily injury liability coverage—$15,000 per person/$30,000 per accident minimum

Property damage liability coverage—$5,000 minimum

Uninsured motorist bodily injury coverage—$15,000 per person/$30,000 per accident minimum

Limit—If you have a covered incident, this is the maximum amount that your insurance will pay. 

Deductible—Your insurance coverage kicks in to cover damage, a loss or a medical expense once you have paid the amount of your deductible. 

Additional coverage—If you decide to add extra coverage to your auto policy that California doesn’t require, you will increase your premium cost.