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Do you feel in the dark or confused about how car insurance rates work? You aren’t alone – rates can vary from insurance company to company and from policyholder to policyholder. Your rates are determined by various factors and underwriting guidelines. There is no ‘one size fits all’ in car insurance.

Because there is not just one particular thing that causes your rates to increase or decrease, and various companies offer differing rates, it can be hard to understand which rate and which policy is the best for your particular situation. We’ve rounded up the most common factors that make up car insurance rates across carriers to help you navigate the winding road of car insurance costs.

Gender: Generally speaking female drivers’ car insurance rates tend to be lower than male drivers’ rates. This can most likely be attributed to statistics; data over the years has shown that women are less risky drivers than men. Men are more likely to get into an accident or be a little too heavy on the gas pedal, meaning they are higher risk drivers – which equates to higher car insurance rates.

Location: Where you live matters when it comes to car insurance rates. Insurance companies take instances of theft, and insurance claims, into account when determining your overall rate. They even examine the overall population of specific states, cities, and suburbs – if you live in or garage in a more densely populated area, your rate is likely to be higher.

Vehicle type: Carriers also look at how valuable your car currently is, and how much it could potentially cost to repair or replace the vehicle when determining your premium amount. Vehicles with high safety ratings tend to get better rates too; which means choosing a safer vehicle when buying a car can pay off down the road, potentially saving you hundreds of dollars in insurance costs.

Marital status: Married couples also tend to get better rates than single individuals. Couples who are married or in a domestic partnership are less likely to be in an accident than someone who is not married. So don’t forget once you get hitched to call your insurance company and let them know that you need to add your partner to your policy, be sure to check for new discounts!

Accident history: Unfortunately, the biggest predictor of your future driving behavior is your past driving history. So if you have been at-fault for an accident in the past, this will play a huge part in determining your car insurance rate. People with prior accidents on their driving record will most likely be given a higher rate due to the at-fault accident. In the event of an accident, you will see an increase in rates upon renewal of your insurance policy.

Driving record: Just like with accident history, your driving record is a strong predictor of how risky of a driver you are. When you get an insurance quote the carrier will pull a Motor Vehicle Record. If any tickets or traffic convictions come up, these will affect your rates. In general, driving history will count towards your car insurance rates for 3 years from the violation date.

Annual mileage: Traditional insurance companies take into consideration how many miles you drive a year. If you fall under a certain threshold for low mileage you could receive a discount on your rate.

Credit score: Insurance companies typically use your credit score information to determine your rates. In general, those with better credit history are considered to be less risky drivers, hence they receive lower rates.

Insurance companies take all of these factors into account when determining car insurance rates. No two individuals have the same background, history, or live the same life, so your car insurance rate is likely different than that of your neighbor. Understanding all of the risk factors that insurance companies asses can help you in the long run; if your rates are high now consider altering your driving behavior, spending some time working on improving your credit score, or shopping for a safer vehicle.

If you are a safe driver, and still feel like you are getting ripped off by your car insurance monthly premium, Metromile is excited to offer low mileage drivers a better option on car insurance with pay-per-mile. If you are driving 10,000 miles or less a year you could potentially see great savings with Metromile. To get a quote go to www.metromile.com/insurance and start by typing in your zip code.

We all pay different premiums when it comes to car insurance. This is because there are many factors that go into determining rates. While it’s pretty hard to predict the future, the goal is to determine the likelihood of there being a claim. Past driving record, claims history, insurance score and geographic location (if you live in the city versus suburbs) are factors that can determine insurance rates.

Insurance scores are often used to determine rates (in states where this is permissible) and uses similar information as a credit score. Using this information has been proven to be highly predictive. For example, a study done by the Texas Department of Insurance determined that drivers with the best credit history are involved in about 40% fewer accidents than those with the worst credit history. Keep in mind that each insurance company may determine their formula differently and how they weigh each factor, which is why rates can vary from company to company and from person to person.

There are some variables that could negatively impact your insurance score such as the presence of collection accounts, multiple past due payments, high use of available credit, and recent applications for credit. The good news is that you can positively influence your insurance score by having a long and established credit history, multiple accounts in good standing, good payment history, and controlled use of your available credit.

At Metromile, we use insurance score in states where it is allowed, in order to price policies as fairly as possible. Transparency is very important to us, so you can view our privacy policy to learn more about how ratings are determined and how to review or correct information. We also file insurance rates with the state Insurance Departments where we offer insurance, and these are usually available to the public. In general, low-mileage drivers usually see savings with pay-per-mile insurance. To see how much money you can save go to www.metromile.com/insurance.

Being in a car accident is scary and frustrating enough, but when the other driver takes off, those feelings can be escalated. A hit and run is any accident in which a driver purposefully leaves the scene without leaving any information. This can include a driver hitting your parked car and not leaving a note, or something more serious like a car hits you or a pedestrian and speeds off. Regardless, it’s important to take the right steps if you’re in this situation.

1. Gather as much information about the car or driver as you can. The license plate number, color, make or model of the car, and even the direction the car was heading is all useful information for police and your car insurance company.
2. Don’t attempt to chase the other driver. Instead, pull over safely and call the police immediately. Police reports need to be submitted within 48-72 hours. Look around for any possible witnesses to the accident and ask for their names and contact information. Be sure to ask witnesses if they have any information about the driver or vehicle that hit your car.
3. If you’re a Metromile customer, follow our Accident Checklist and assess accident damage. This includes recording the incident by surveying the scene and taking pictures of everything you see, including the damage from all necessary angles, as well as pictures of the spot where the accident happened.
4. Contact your insurance company to report the accident and file a claim.

If you find yourself in a situation where your car was damaged when you weren’t there, follow similar steps. Document any damage and ask around to see if anyone saw what happened. File a claim with your insurance company but remember that without a license plate number, it’s unlikely you’ll be get reimbursed, or you’ll be subject to your deductible.

Remember, never leave the scene of an accident yourself. If you’re involved in a hit and run, or any accident, and you are a Metromile customer, you can file a claim online or reach us at 1.888.595.5485
. We’ll do everything we can to get you back on the road as quickly and safely as possible.

When getting a new car insurance quote (or revisiting your current policy coverage), it might be tempting to choose coverage levels that result in the lowest monthly bill. But if paying for insurance equates to paying for peace of mind, it might be worth it in the long term to add additional protection. Read on for a breakdown of various coverage options and how to choose the right levels for your needs.

Liability
This is the minimum coverage level required for most U.S. drivers. If you are at-fault in an accident, your insurance policy will cover vehicle damage and/or bodily injuries to the other party (at the levels you choose). Each state has minimum required liability limits, but you might consider purchasing a policy with higher limits to ensure you’re better protected, even if your policy might cost a bit more. If the damage caused in an accident exceeds your coverage limits, you could be held responsible for the remainder of the costs.

Comp & Collision
In addition to liability coverage, you can elect to add comprehensive and/or collision insurance, often known as “full coverage.” Comp and collision coverages are technically separate but are often discussed together. With collision coverage, in the event that you’re in an accident, your insurance policy will cover damage to your car (per the terms of the policy). Comprehensive coverage means you are covered if anything happens to your car where no one is at fault (per the terms of the policy) like a tree falls on it or there is weather damage. If you often park your car outside, this could be an important add-on to your policy. Keep in mind that the lower the deductible you choose, the higher the premium might be, but also the less you will have to pay if something happens.

Personal Injury Protection (PIP) or Medical Payments
PIP will protect you (and your passengers) against personal injury by covering medical expenses. In some states, PIP is a “no fault” coverage which means that you will still be covered even if you are determined to be at fault. Note that PIP coverage varies based on state, and if it isn’t available, then you’ll likely have the option to choose Medical Payments coverage. Both PIP and Medical Payments coverage are similar, though PIP typically provides a much broader spectrum of coverage. Medical Payments usually covers only medical bills for you and your passengers, whereas PIP will often extend to cover additional things like income loss, funeral expenses and essential services.

Roadside Assistance
In addition to getting access to an on-call tow truck, roadside assistance can also provide you with flat tire changes, battery jump starts, locksmith services and more. If you love road trips, this might be a smart coverage for you! At Metromile, adding roadside assistance is typically much cheaper than using an external company like AAA.

If you don’t drive much, we’ve found that customers are saving a ton of money after switching to pay-per-mile insurance. That means that you can get all of the coverage needed to give you peace-of-mind, and still save money. To see how much you could save, get a quick quote now.

The following is a guest post from Neil Richardson, an advisor for The Zebra, the nation’s largest car insurance comparison marketplace.

When it comes to car insurance, most people are familiar with coverage for injury and damage that you might cause to someone else (liability), and also damage to your vehicle (commonly, comprehensive + collision = ”full coverage”). However, there is another important aspect to car insurance that drivers need to know about as well: Injury coverage for you and your passengers.

Commonly referred to as PIP for brevity’s sake, personal injury protection covers medical bills resulting from injuries that you or your passengers suffer in the event of a crash, regardless of fault. Since PIP coverage amounts vary by state and situation, you will want to ask your agent which options are available to you. If PIP isn’t available in your state, then you’ll likely have the option to choose Medical Payments coverage.

Both PIP and Medical Payments coverage are similar, though PIP typically provides a much broader spectrum of coverage. Whereas Medical Payments covers only medical bills for you and your passengers, PIP will often extend to cover additional things like work loss, funeral expenses and essential services, and even death benefit in some cases.

You should especially consider carrying PIP or additional medical on your policy if:

• You are someone who drives often with passengers since you could potentially be held liable for their injuries from an at-fault accident. Even if your passengers don’t want to file a lawsuit against you for their medical bills, having this additional coverage on your policy will provide a major benefit to anyone riding in your vehicle.
• You don’t have health insurance or if you have an extremely high deductible on your health plan. In emergency situations, your auto insurance will kick in immediately to provide medical coverage (assuming you have it added to your policy) rather than having to worry about covering the deductible on your health insurance.

If you live in a state that requires PIP, then you will have the minimum amount of coverage included on your policy. However, in most cases, you can also increase this limit to better protect yourself (much like you can with other coverage options). As with anything concerning auto insurance, if you aren’t sure of your options you should always ask your agent for clarification. Ultimately, your safest bet is to carry as much coverage as you can afford, and PIP is something you should strongly consider adding if you don’t already have it included on your policy.

Editor’s Note: Metromile offers this coverage for all policies, so if you’d like to add this protection, you can do so when choosing coverage levels in your insurance quote. If you are a current customer and would like to add this coverage, just give our customer support team a call (888-244-1702) and we’ll take care of everything for you.

Graduation season is here, and a new group of millennials have traded in their backpacks for briefcases. With these new jobs comes a wave of financial freedom…and adult costs, like rent, groceries and car insurance.

If you are a new grad and wondering where to start shopping for car insurance, consider this when purchasing:

Look around: Don’t feel stuck to the insurance company your parents use. You can save a ton of money by making the switch to another company. Shop around using a site like Compare.com. See more on making the switch to a new insurance company here.

Consider your coverage: Do you need comprehensive and collision, or just liability? Are we speaking gibberish to you? Comprehensive coverage covers all incidents that aren’t considered “accidents” like weather or vandalism damage. Collision coverages covers your vehicle in the event of damage due to an accident. Liability insurance doesn’t cover your car, but covers damage to another person resulting in an accident you cause. Learn more about making the right coverage decision for you and your car here.

Consider per-mile insurance: If you have just moved to the big city and are primarily using your car for weekend trips or when you’re running late to work, consider pay-per-mile insurance. It will put you in control of how much you pay for car insurance. You’ll also turn you car into a smart car with our driving app – where you can check your bill, learn about your trips and driving trends, and even diagnose check engine lights. Interested? Get a free quote here.

Understand your purchase: Speak up if you have questions. Be sure to read your policy before signing up to understand how and what is covered, when your coverage begins, what your premium and deductibles are, and how to file a claim.

Congratulations to the class of 2016!

No matter how minor, being in a car accident can really jolt you (pun not intended). To ease the burden and shock, familiarize yourself with the following tips about what to do before and after an accident.

Before the accident
Be sure to keep your vehicle registration, auto insurance and emergency contact list in your car, and always carry your driver’s license with you when driving. Keep a set of orange cones or warning triangles in your trunk to help alert traffic in the situation of an accident.

At the scene
Before worrying about anything else, make sure everyone is OK (including people in the other car), and call 911 if anyone is injured. Then immediately move everyone (and your car if possible) to a safe location on the side of the road.

Once in a safe space, be sure to call the police to file a police report, and use your smartphone to take pictures of the damage. Before the other party departs, exchange information and take down their insurance information, license plate and a photo of their driver’s license. Notify your insurance company immediately and be ready to provide them with this information. If you are a Metromile customer, you can easily file your claim online or call us at 1.888.595.5485.

In case of phantom accidents
In the case of a hit and run, be sure to get as much information as possible, especially a full or partial license plate if possible. If there are any witnesses, get their contact information. Avoid fixing the car until the damage has been assessed by an adjuster.

In the case of stolen car, call the police as soon as possible to file a report, and then contact your insurance company. If you are a pay-per-mile customer, the Pulse can be used to help locate a stolen car (it’s happened in the past!).

The Aftermath
At Metromile, a customer service advocate will reach out proactively to help ensure the claims process goes as smooth as possible. No other leading insurance company does this! They will track your progress and help you with any questions you may have about resolving the claim.

If you are a pay-per-mile insurance customer and are in an accident, you can reach the Metromile claims team 24/7 at 888.215.9176. Whether you need help locating repair facilities or need an update on work being done, Metromile can get you the information you need. We’ll do everything we can to get you back on the road as quickly and safely as possible.

We are thrilled to announce that Intact Financial Corporation, the largest provider of property and casualty insurance in Canada, has made a strategic investment in Metromile.

2015 was an exciting year for Metromile – we launched a partnership with Uber, expanded to the East Coast and added to our executive team. Funds from this investment will be used to continue on our exciting journey by accelerating Metromile’s growth and offerings nationwide. For our customers, this means a continued focus on the customer experience from sign up through day-to-day needs, improved app technology and updated features, further development of the claims experience and much more. You’ll also be seeing a lot more of us around town!

Intact Financial shares similar values in transparency, customer experience and a technology-driving approach to insurance. The venture represents an exciting opportunity for Intact Financial to expand its core competencies which will ultimately enhance the customer experience.

To see more announcements from Metromile, visit our Press page. And if you are interested in our pay-per-mile insurance offering, you can learn more here.

We recently shared a brief history of how Metromile became the pioneer of pay-per-mile car insurance — there’s more to that story. While we spearheaded the idea of plugging a device into your car to measure mileage, many other insurance companies are using a similar model to offer car insurance discounts, but monitoring driving behavior as well. The term “usage-based insurance” is becoming increasingly popular, so it’s important to understand that not all usage-based programs are the same. Let’s dive in and explore the things to consider when choosing the right usage-based insurance for your needs.

There are many factors that can affect your car insurance premium, such as driving history, the model of your car or your geographic location. That’s because typically, these are indicators that can predict how likely an accident might be. Many insurance companies have deemed driving behavior to be one of the most important indicators since a driver who frequently slams the breaks is likely at a higher risk to be involved in an accident. That’s why insurance companies offer safe driving programs, where they reward good driving behavior with insurance discounts. The trade in? Your driving behavior will be monitored, and the occasional mistake could affect your premium. The way insurers measure safety varies, but some of the most common factors include the time of day, average speed, sudden acceleration and hard braking.

Here at Metromile, we only measure mileage and not behavior. We believe that risk is determined primarily by the amount of time you are in the car. If you aren’t behind the wheel, you aren’t going to be in a car accident! That’s why with pay-per-mile car insurance, the amount you pay is based on the miles you drive. Because we base your monthly bill on exact mileage, we typically save low-mileage drivers (under 200 miles per week) a lot of money compared to the discounts offered by other usage-based programs. On average, our customers are saving $500 a year!

So what’s the best usage-based program for you? It depends on your driving style and how much you drive. According to The Zebra, most usage-based insurance programs offer about 10-15% discounts. If you don’t drive much, you could see much more significant savings (like over $500!) with Metromile’s pay-per-mile car insurance offering. Find out how much you could save by getting a quote with Metromile!