What generally affects auto insurance rates?

The insurance industry uses data that weigh the following risk factors in calculating your policy payments:

Accidents – Every fender bender increases a driver’s risk quotient.
Age – Youthful males and older drivers can be expected to have more accidents.
Credit rating – Lower FICO credit scores translate to higher insurance risk.
Gender – Women are safer drivers than men.
Location – Rural drivers are lower risks than urban drivers.
Marital status – Married individuals are considered safer drivers.
Occupation – Significant business-related driving increases risk.
Traffic citations – Every speeding, red-light running, and other traffic ticket raises the risk ante.
Vehicle – Sporty vehicles are more risky than conservative family sedans. Also, air bags, braking-safety systems, theft-deterrent devices, and other features decrease risk.
Others – Insurers also factor annual mileage, distance to work, and years behind the wheel into risk assessment.

jim April 16th, 2008 10:19 am
THE URBAN MYTH IS THAT THE INSURANCE COMPANIES ALSO BASE RATES BASED ON THE COLOR OF THE CAR… FOR EXAMPLE THE MYTH SAYS THAT A STATISTICAL STUDY SHOWS RED CARS ARE MORE LIKELY TO BE IN AN ACCIDENMT THAN A WHITE COLORED CAR.