Do all states use credit score to set insurance rates?

No — most US states allow credit-based insurance scoring as one pricing factor, but a few states prohibit the practice entirely, so this varies by where you live.

How much does a DUI or accident actually raise my premium?

This varies significantly by insurer and state, but serious violations like a DUI or at-fault accident typically cause substantial premium increases, with the impact generally fading (though not disappearing) after several years of clean driving afterward.

Should I choose a higher deductible to lower my premium?

This can make sense if you have adequate emergency savings to cover the higher deductible if you need to file a claim — it's a trade-off between lower ongoing premiums and higher potential out-of-pocket cost at claim time.

How Insurance Companies Actually Calculate Your Premium

Driving Record

Accidents, moving violations, and DUIs are among the most heavily weighted factors — a clean record over several years typically qualifies for meaningfully better rates than a record with recent incidents, and the impact of a specific violation often fades (though doesn't disappear) after several years.

Age and Experience

Younger, less experienced drivers statistically have higher accident rates and typically pay significantly more, with rates generally decreasing through the 20s and stabilizing through middle age before sometimes rising again for older senior drivers.

Vehicle Type

Insurance cost depends on the vehicle's price, repair cost, safety ratings, and theft rates for that specific make and model — a higher-performance or luxury vehicle typically costs more to insure than a comparable economy vehicle, independent of the driver's own record.

Location

Insurance is priced regionally, and even by ZIP code in many cases, reflecting local accident rates, theft rates, weather-related risk (hail, flooding), and the cost of local repairs and medical care.

Credit-Based Insurance Score

In most US states (a few prohibit this practice), insurers use a credit-based insurance score as one pricing factor, based on research showing a statistical correlation between certain credit behaviors and claims likelihood — this remains a point of some public debate, but it's a real factor in most states' current pricing models.

Coverage Level and Deductible

Liability-only vs. full coverage — full coverage (adding comprehensive and collision) costs meaningfully more than liability-only.
Deductible amount — choosing a higher deductible lowers your premium but increases your out-of-pocket cost if you file a claim.
Coverage limits — higher liability limits cost more but provide more protection if you're found at fault in a serious accident.

Annual Mileage and Usage

More time on the road generally correlates with more accident exposure, so higher annual mileage or commercial use typically increases premiums compared to low-mileage or purely personal use.

How to Actually Lower Your Premium

Maintain a clean driving record over time
Bundle auto with home/renters insurance for a multi-policy discount
Ask about available discounts (good student, low mileage, safety features, defensive driving course)
Shop multiple insurers periodically, since pricing algorithms and competitiveness vary between companies
Consider raising your deductible if you have adequate emergency savings to cover it

This article is provided for general informational purposes only and does not constitute financial, tax, legal, medical, or professional advice. Always verify important decisions with a qualified professional or official source.