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Car Insurance Realities

People who live in the city pay more to insure their cars than people outside the city. Within a state, city dwellers usually pay more for car insurance than rural residents. Cities have a higher risk for claims due to more traffic, more people and more theft, which generally means higher car insurance rates.

An accident can make my rates go up, even if it's not my fault. Accidents that are your fault have a direct effect on your car insurance rate. Depending on the circumstances, you also may be placed in a group of customers who receive higher rates, even if an accident isn't your fault.
Progressive will group drivers with others who share similar risk characteristics. Common practice in the car insurance industry is to rate drivers based on data collected for other drivers who share similar characteristics, which overall is a solid predictor for car insurance rating.
Anyone who drives my car with my permission is covered if I have insurance. If you allow someone to drive your car, that person is covered by your insurance policy. Keep in mind that if the person who drives your car doesn't have insurance and causes an accident, you could be held responsible for the damage, which could make your car insurance rate go up.

Information from my credit report is used when determining my car insurance rate.We order your credit report and use information from it to calculate your insurance score — this score is used when determining your car insurance rate. We use credit because numerous studies have shown that credit is a very powerful and independent predictor of the likelihood of future accidents or insurance claims. In fact, Progressive data shows that consumers with the worst insurance scores are twice as likely to have an accident or insurance claim as those with the best scores.

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