Marissa Hayes is a technical editor and contributing writer. She holds a Bachelor’s Degree in history, and she was the editor of the literary magazine, The Bluestone Review.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Car Insurance Agent

UPDATED: Sep 21, 2021

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The Short of It

  • Most insurance companies calculate rates using an individual’s personal driving history and other personal factors
  • Drivers in the same neighborhood with the same vehicle may pay different rates depending on their driving records
  • Drivers can shop online to find an insurance company that fits their specific needs

If you’re on the hunt for great auto insurance, you’ll be happy to learn that you can find affordable auto insurance companies that rate drivers individually.

This means that even your next-door neighbor who owns the same vehicle as you may be paying a different rate despite being insured with the same company.

Most major insurance companies design their auto insurance rates for drivers as individuals and use important factors about your life to calculate your rates.

In this day and age, you can even find insurance coverage, pay per mile specifically, that only charges you for how far you drive. What’s even more exciting is that auto insurance quotes from auto insurance companies that rate drivers individually can be requested online for free.

Enter your ZIP code to get free quotes from auto insurance companies that rate drivers individually in your city.

How are auto insurance premiums calculated?

You’ll notice that you’ll need to fill out some personal questions when applying for insurance online. There’s a simple reason for that.

Insurance companies care a lot about you as an individual and want to learn about you. When an insurance company is deciding if it is going to provide you with insurance, it needs to ascertain just how much of a risk you would be to insure.

Each insurance company has its own auto insurance calculator and inputs specific information into it so it can properly calculate your rates. Here are some personal factors that affect auto insurance rates:

  • Your credit score
  • Your age
  • Your sex
  • Your vehicle’s make and model
  • Your education level
  • Your location
  • Your driving history

If you have good credit and a great driving record, you can score excellent auto insurance rates from auto insurance companies that rate drivers individually.

Now that you know how an insurance company calculates rates, let’s take a look at some of the best companies in today’s market.

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The Best Auto Insurance Companies for Individuals

When you go to buy auto insurance from auto insurance companies that rate drivers individually, you may be shocked to find some of the biggest names in the insurance industry also offer some of the best rates.

Just take a look at how the average rates of major insurance companies measure up to each other:

The Best Auto Insurance Companies Average Annual Auto Insurance Rates by Coverage Level
Insurance CompanyLow Coverage Average Annual Auto Insurance RatesMedium Coverage Average Annual Auto Insurance RatesHigh Coverage Average Annual Auto Insurance Rates
Allstate$4,628.03$4,896.81$5,139.02
American Family$3,368.49$3,544.37$3,416.40
Farmers$3,922.47$4,166.22$4,494.13
GEICO$3,001.91$3,213.97$3,429.14
Liberty Mutual$5,805.75$6,058.57$6,356.04
Nationwide$3,394.83$3,449.80$3,505.37
Progressive$3,737.13$4,018.46$4,350.96
State Farm$3,055.40$3,269.80$3,454.80
Travelers$4,223.63$4,462.02$4,619.07
USAA$2,404.11$2,539.87$2,667.92
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As you can see, your rates can also be affected by the amount of coverage you have on your vehicle. Now, if you want to make sure you’re driving with the best level of protection while getting the best price, there are a few things you can do to achieve those goals.

How Drivers Can Save on Their Rates

You can take matters into your own hands when it comes to your rates by making sure every available discount you qualify for has been added to your policy. Discounts can help make the best insurance accessible to everyone.

Review this list of discounts offered by major insurance companies to make sure you’re not missing out on great saving opportunities:

Auto Insurance Discounts By Company
Auto Insurance DiscountsAllstate (%)American Family (%)Farmers (%)GEICO (%)Liberty Mutual (%)Nationwide (%)Progressive (%)State Farm (%)Travelers (%)USAA (%)
Adaptive Cruise ControlN/AN/AN/AN/A5xxN/AN/AN/A
Adaptive HeadlightsN/AN/AxN/A5xxN/AN/AN/A
Anti-lock Brakesxxx555x5xx
Anti-Theftxxx252025x15xx
Claim Freexxx26x10x152312
Continuous CoveragexxxxN/AN/AxN/A15N/A
Daytime Running Lightsxxx155xN/Axx
Defensive Driverxxxx105105103
Distant StudentxxxxN/A10xx7x
Driver's Edxxxx10N/A101583
Driving Device/AppxxN/Ax30402050305
Early SigningxxxxN/A8xN/A1012
Electronic Stability ControlxxxN/A5xxN/AN/AN/A
Family LegacyN/AxN/AxN/AN/AxN/AN/A10
Family PlanN/AxxN/AN/A25N/AN/AN/AN/A
Farm VehiclexN/AxxN/AN/AN/AN/AN/AN/A
Federal EmployeeN/AN/Ax810N/AN/AN/AN/AN/A
Forward Collision WarningN/AN/AN/AN/A5xxN/AN/AN/A
Full PaymentN/Axxx$5N/AxN/A7.5N/A
Further EducationN/AN/AN/Ax1015N/AN/AxN/A
Garaging/StoringN/AN/AxN/AN/AN/AN/AN/Ax90
Good CreditxxN/AN/AN/AxxxN/AN/A
Good Studentxxx1522.510x2583
Green VehiclexN/A5N/A10N/AN/AN/A10N/A
HomeownerN/AN/Axxx5x35N/A
Lane Departure WarningN/AN/AN/AN/AxxxN/AN/AN/A
Life InsurancexN/AN/AN/AN/AxN/AN/AN/AN/A
Low Mileagexxxxxxx30xx
LoyaltyN/AxN/AxN/A5xN/AN/Ax
MarriedN/AN/AN/AN/AxxxxN/Ax
Membership/GroupN/AN/AN/Ax107N/AN/AxN/A
MilitaryxN/Ax154N/AN/AxN/Ax
Military GaragingN/AN/AN/AN/AN/AN/AN/AN/AN/A15
Multiple Policies1029x102010121713x
Multiple Vehiclesxxx25102010208x
New AddressN/AN/AN/AN/A5N/AN/AN/AN/AN/A
New Customer/New PlanN/AN/AN/AN/AxN/AN/AN/AN/AN/A
New GraduateN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Newer VehiclexN/AxxN/Axx401012
Newly LicensedN/AN/AN/AN/A5N/AN/AN/AN/AN/A
NewlywedsN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Occasional OperatorN/AN/AN/AN/AN/AN/AN/AN/AN/Ax
OccupationxN/Axx1015N/AN/AxN/A
On Time PaymentsxN/AN/AN/AN/AN/AN/AN/A15N/A
Online ShopperN/AN/AN/AN/AN/AN/A7N/AN/AN/A
Paperless DocumentsxxxN/AN/A5$50N/AN/AN/A
Paperless/Auto BillingxxxN/Ax$30x$233
Passive Restraintxxx40x20x40xx
Recent RetireesN/AN/AN/AN/A4N/AN/AN/AN/AN/A
Safe DriverN/AN/Ax15N/A3531152312
Seat Belt UseN/AN/AN/A15N/AN/AN/AN/AN/AN/A
Senior DriverxN/AxN/AN/AN/AN/AN/AN/Ax
Stable ResidenceN/AN/AN/AN/AN/AxxN/AN/AN/A
Students & AlumniN/AxN/Ax107N/AN/AN/AN/A
Switching ProviderN/AxxN/A10N/AxN/AN/AN/A
Utility VehiclexN/AxxN/AN/AN/AN/AN/AN/A
Vehicle Recoveryxxx153525x5xx
VIN EtchingN/AN/AxN/A5xxN/Axx
VolunteerN/AxN/AN/AN/AN/AN/AN/AN/AN/A
Young DriverN/AN/AN/AN/AxN/AxN/AN/A$75
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While discounts provide an excellent way to save money, some of the best steps you can take to lower your rates include following safe driving practices and maintaining a great credit score.

Auto Insurance Companies That Rate Drivers Individually: What You Need to Know

Most insurance companies rate drivers on an individual basis to properly calculate how much of a risk insuring those drivers will be.

This means you can earn great rates based on the merits of your excellent driving abilities; however, you can also face increased rates if you have a long history of accidents and bad credit.

Discounts can help offset the cost of your rates, but you should always shop around when looking for a new auto insurance company; auto insurance companies that don’t rate drivers individually could be very expensive so get at least three quotes to make sure you’re getting the best deal.

Don’t wait to find cheaper insurance. Enter your ZIP code to receive free quotes from auto insurance companies that rate drivers individually today.