Anyone who’s listed as a driver on your policy is insured for any vehicles he or she drives, as long as the trip isn’t for business purposes. Your policy also covers anybody who you’ve allowed to use your vehicle by “expressed or implied permission,” as long as it’s not for business purposes.

For example: If you told a friend that he could borrow your car anytime, and he does so one day without asking you and gets into an accident, you’re still liable even if you didn’t give him expressed permission to drive your car on that specific occasion.

How Your Car Insurance Rates Are Determined

Your insurance rates are determined by the following seven main factors:

1. Your driving record.

2. Your age.

3. Your gender.

4. Your marital status.

5. Your family members.

6. Your place of residence.

7. Your vehicle.

Let’s talk about each one in more detail.

Your driving record plays an important role in determining your car insurance premium. If you’ve been involved in an accident that was 100% your fault, or if you’ve had one or more traffic violations or convictions, you’ll pay a higher rate. (If you’re buying insurance for the first time and don’t have a clean driving record, some insurance companies may refuse to insure you.)

Even if you’ve had a clean driving record for several years, you must make sure you don’t suddenly get several speeding tickets or other traffic violations within a short time. Otherwise, your insurance company may not renew your insurance when it expires.

For drivers with poor driving records who can’t find an insurance company to insure them, they can get coverage from their state-regulated insurance programs. These may be called joint underwriting associations, state-run pools, reinsurance companies, or assigned risk pools. Since some states require them to be insured, they must also provide coverage to all applicants, including the “high-risk” drivers.

If you’re under age 25, you will likely have to pay a higher premium. This is because statistics have shown that drivers in this age group have higher accident rates than their older counterparts.

On the other hand, if you’re between 50 and 65 years old and have a clean driving record, you may receive a 5% to 10% discount, depending on the insurance company. This is because statistics have shown drivers in this age range have low accident rates.

With some insurance companies, if you’re over 65, you may have to pay a higher premium because of higher accident rates. And if you’re older than 75, you may not even be able to find an insurance company to insure you at all. If so, you can call the American Association of Retired Persons (AARP) at 202-434-2277 to find out about the insurance programs they have for older drivers.

If you’re a young man under age 25, you’ll pay more for insurance than a woman of the same age with a similar driving record. This is because statistics have shown young male drivers are involved in more accidents than young female drivers, and they have three times as many fatal accidents.

The premium gender differences usually level out as you age. For instance, a single male driver over the age of 45 pays about the same premium as a single female driver of the same age.

If you’re married, you may pay a lower premium. This is because statistics have shown married drivers usually have fewer accidents than single ones.

Other licensed drivers in your household also affect your car insurance premium. For example, if you have a teenage son or daughter, or a spouse who has a poor driving record, you will likely have to pay a higher rate.

If you live in a big city, your chance of getting into an auto accident or having your vehicle stolen is greater than if you reside in a rural area. So you pay a higher rate.

Now, if you live in a big city but you live close to where you work, you usually qualify for a discount.

The kind of car you drive also affects your insurance premium. Rates on an economy car are lower than on a sports or luxury car because the former costs less to repair or replace.

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