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After you apply for car insurance, the insurance company determines if you qualify for the coverage. If you qualify, the insurance company decides your car insurance premium. Car insurance premiums vary and are based on several factors. If you have not had any accidents or traffic violations, your rate will probably be lower than a driver with a driving record that contains wrecks or traffic violations. If you do not drive often, or do not drive much in a busy city, your rates will most likely be lower than a person who drives a lot or in heavy traffic. Driving a lot, or in heavy traffic, increases the risk of an automobile accident and the risk of having to file an insurance claim. If you have a rather average car, your rates will probably be lower than if you drive a sports car or luxury car. Sports car drivers, on average, file more insurance claims, and luxury cars are at a higher risk for auto theft. If you are a woman, you will most likely pay a lower rate for your car insurance premium than a man would. Statistically, men file more car insurance claims than women. If you live in a community where there is little car theft and the rate of auto accidents is low, you will probably pay less for your car insurance than someone who lives in a place with a lot of car theft. If you are older than 25, in most cases you will pay less for your car insurance premium than younger drivers. Statistically, drivers under 25 have more traffic accidents than older drivers. Insure U-National Association of Insurance Commisioners National Association of Insurance CommissionersDriving Record
The Amount You Drive
The Type of Car You Drive
Male vs. Female
Your Location
Age of the Driver
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