ELi5: what does my car insurance rate mean? I’ve never had any accidents so I don’t think I’ve ever dealt with it but is it the cost of how much I pay for my 6 months of car insurance?

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ELi5: what does my car insurance rate mean? I’ve never had any accidents so I don’t think I’ve ever dealt with it but is it the cost of how much I pay for my 6 months of car insurance?

In: Economics

Auto Insurance uses statistics to determine your price until you have built up an actual driving record. Under age 25, men will have higher insurance. Over 25, women will have higher insurance (in states that allow it). Their goal is to ultimately determine how much you will cost them over time, and charge you accordingly so that you pay more than that.

Generally yes, although some companies will show you a full year. It’ll usually say which (but won’t always be obvious).