Which factor most influences the cost of automobile insurance?

The cost of automobile insurance is significantly influenced by the driver's age due to the correlation between age and driving experience. Younger drivers, particularly teenagers, are statistically more likely to be involved in accidents due to inexperience, leading insurers to view them as high-risk individuals. Consequently, insurance premiums for younger drivers tend to be higher to offset the risk that insurance companies assume.

As drivers age and gain more experience, their driving records typically improve, which results in lower premiums. This trend reflects the underwriting practice of assessing risk based on demographic factors, and age is one of the strongest indicators of driving behavior.

While factors such as the car's year and model, the driver's credit score, and local weather conditions also play roles in determining insurance costs, age stands out as a primary factor because of its direct impact on accident likelihood and driver's track record.