Auto insurance rates are based on many factors, but most importantly statistics influence your insurance the most. It is a reflection of how likely the insurer thinks you will make a claim and how costly that claim will be. This is why statistics determine the risks the insurer takes and decide how much to charge a driver for their insurance. Here are some the main factors which determine the cost of insurance: Age and experience. Young and inexperienced drivers are statistically more likely to be involved in an accident. The lack of experience and judgement is a common reason for the age group of 17-25 to face more accidents than any other age group. This also means that this age group pays the most for insurance and it is not something that can be changed easily. Some insurance companies automatically charge less for drivers over 25, but that is not always the case.
Your driving record. Before insuring you, the insurance company will always ask for your driving record. This is a good reflection of your judgement and habits on the road, if you are deemed a "high-risk" driver or a good one. People that got into more than a few accidents in the 17-25 age group will probably continue to be a poor driver on the road and will see higher insurance rates until proven otherwise. Drinking and driving and getting caught distracted driving are equally detrimental to your insurance rates since you are deemed more likely to repeat the offense. In some states and insurers, drivers with a DUI history may no longer qualify for certain coverage limits. Legally, they are still entitled to minimum liability coverage but the cost for premiums will be substantially higher. But don't be worried about every traffic violation, some insurance companies have pretty lenient policy on one or two speeding tickets and parking tickets do not even factor in for some insurers. Your job and distance of commute. Certain jobs require more time spent on the road, this includes the commute to work. The longer the distance, the more likely chance of a accident. Your occupation may also imply you carry certain equipment with you to work, or work in a high risk area. Due to the statistically nature of occupations being a factor in insurance risk, the cost of insurance will reflect it.
The car itself is a major factor. It is quite self explanatory. Someone driving a super expensive sports car will see higher insurance rate in comparison to a slower and less fancy family sedan car. The type of car often determines how likely a person will get into an accident. The more expensive the car, the higher the costs it is to replace if stolen or totaled in an accident. And it goes the same with repairing higher-priced cars, repairing a bumper on a Civic or Toyota can cost around $300 for an insurer but repairing a Porsche's bumper can easily be 10 times that amount. That goes on without saying that larger engines also means higher insurance costs. And lastly, where you live. If you live in a gated community where there is a neighborhood watch or a security guard, the chances of your car to be broken into or the risk of an accident is lower. But if you live in an area where it is notorious for accidents and crime, the chances of your insurance being higher is very likely.