by Bella Cooper

Created on: June 04, 2009

Auto insurance: Key factors than can drive up your car insurance costs

Car insurance rates are very much dependent on the individual person, so it can be quite puzzling as to how they are calculated. Further, there are many factors that contribute to your final premium, such as your age, gender, or driving record. Here is a guide outlining how auto insurance rates are determined.

Factors that can affect your insurance rate:
- Your driving record
The more accidents, traffic violations, and insurance claims that you have, the higher your insurance rates will be.

- Your age
The younger you are they higher your insurance rates will be. If you are a family with young drivers in your household, you are also likely to have a higher rate.

- Geographical location
If you live in an urban area that is heavily populated your insurance rates are likely to be higher. This is because statistically more accidents happen in these areas.

- Car make and year
If you have an expensive car then your insurance rate will be higher. This is because for one the car is more likely to be stolen, and two the parts are more expensive leading to increased cost for repair.

- Your driving pattern
Dependent on how often you will use your car, your insurance rates will vary.

Discounts
There are many discounts available for auto insurance. For example, having more than one car in your household can qualify youfor a multiple car discount. There are also discounts available for certain occupations that are considered to be lower risk, and finally, some companies and organizations also offer discounts as well. Be sure to ask around to see if you qualify for any of these additional discounts.

Variations between insurance companies
Each company calculates their insurance rates slightly differently and offers different discounts, so it is very important to shop around to find a good match for you. There are many free websites that can allow you to compare different insurance policies and give you quotes for some companies. In addition, you should go directly to the Geico, Esurance, and Progressive websites, which will also give you direct quotes. For certain insurance companies, like State Farm, you may need to call the local office directly to get a correct estimate. It may seem like a lot of work, but trust me, it can save a lot of money in the long run to compare the different companies policies.

Learn more about this author, Bella Cooper.
Click here to send this author comments or questions.