MN Auto Insurance: What Affects Policy Cost?

Variables that affect the cost of your auto insurance cost.

Auto Policy Cost


Age and Gender –  Insurance Industry statistics show that certain groups of people have different accident rates, based on their age and gender. For example, teenagers and seniors have more accidents. Because they are viewed as an increased risk for the insurance company, they pay more for coverage. 

Type of Vehicle –  Certain vehicles cost more to repair or replace. An insurance company charges more for physical damage coverage on one of these vehicles.

Mileage –  The more you drive, the more opportunity for an accident – and the more you pay for coverage.

Driving Record –  You will be rated according to traffic accidents and tickets you have over a period of years. The more incidents, the greater the premium. You may also be turned down for coverage if you have too many.

Where You Live – If you live in an area with more traffic (a city versus a rural area), industry statistics show that you have a greater chance for an accident and therefore will pay more for insurance.

Deductibles –  Some coverage’s in your policy have a deductible, which is the amount you pay first, before your insurance company pays, on a covered loss. The higher the deductible, the lower your premium. Insurance companies offer varying deductible amounts.

Discounts –  Your premium may be reduced by various discounts offered by some companies in some instances. For example, you may get a discount if you have your homeowner’s insurance and auto insurance with the same company; or if you are a non-smoker. Other discounts are required by law: policyholders age 55 and over who have successfully completed a defensive driving course; a vehicle equipped with an authorized anti-theft protection device.

Surcharges –  If you have one or more traffic violations or accidents, your insurance company may attach an additional charge to your policy. The Surcharge Disclosure Sheet, which by law must be given to you at the time you apply for your policy, will have the details.

Minnesota Auto Insurance: Required Coverage
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Minnesota Auto Insurance: What Affects Policy Cost?

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