In most states insurance companies allowed to set up their own rates and do so by using certain risk factors to calculate a driver's auto insurance rate. These factors are important because statistically they can help determine those motorists that will be more of a risk for an insurance carrier and thus their rates will be higher. The factors are important for a driver or policyholder to know so that they know on what criteria their rates are set.

Risk factors help insurance companies determine the premium rates as accurately as possible. There are many risk factors. Here are a list of some primary factors that most insurance companies use:

• Age
• Gender
• Marital Status
• Geography
• Driving Record
• Claims History
• Vehicle Type
• Occupation
• Education
• Miles driven each year
• Years of driving experience
• Type of vehicle use (business, personal, commuting, etc.)
• Current insurance and current insurance limits

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