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Insurance companies calculate the cost of car insurance premiums based on a variety of key factors. To do this they need you to provide personal information about the driver(s) the car and the location.Once collected this data will determine the risk level of the applicant. The risk level will then determine what the cost of the car insurance will be. The higher the risk the more it will cost, alternatively the lower the risk the cheaper it will be.

THE KEY FACTORS TO THE COST OF CAR INSURANCE ARE:

Age
Experience comes with time. This is why accident rates and insurance premiums are higher to drivers under 25

Gender
So which gender is safer…. Statistically male drivers are more likely to cause an car accident than their female counterparts, making women the safer drivers.

State
Different states have varying  laws about the level of auto cover needed. Also  states have  have more accidents compared to others. This could be due to weather and the quality of the roads and other factors.

Where the Vehicle is Parked and Driven
Most insurance companies will ask for your ZIP code. Statistically some areas have high rates of theft and vandalism,  parking or driving in these areas will increase premiums. Drivers in rural areas and small towns will have cheaper car insurance than city drivers.

Annual Mileage
Statistically the more time the vehicle is on the road the higher the risk of accident.

Make
Is it a luxury, sports or family car? Which manufacture does the car belong? As some makes of car are safer, faster, more reliable and have greater security features. The cost of car insurance takes into account the make of the vehicle .

Model
The make of the car might be a Toyota Camry the model could be an L, LE, SE, XLE or Hybrid. Different models will effect the cost of the insurance. For example a four door model  will often  cheaper insurance  while a model with 2 doors will have higher insurance. Additionally a  larger or high performance engine would  put the price of the insurance up, while  models with extra safety and security features will decrease the insurance price.

Driving History
This is a big one, Accidents and prior claims will be a major factor in the cost of car insurance. Regardless of the situation or who was at fault the the premiums will reflect the drivers history. Most insurance companies offer discounts to drivers if they can prove to be accident free over a several year time frame.

Claims History
The more clams you have submitted over the last few years will reflect premiums.  If you’ve submitted no or few claims, you could  get lower car insurance rates.

Owned or Financed
Depending on the circumstance financed vehicles often cost more to insure. Imagine the vehicle was financed for more then the car was worth, in this case the cost of car insurance would be more, to try and cover the outstanding debt.

Coverage Purchased
Depending on how much car insurance you need will determine how much you pay. Generally The more options added to the insurance  like:  theft, road side assistance and fire to name a few. The more it will cost. It comes down to finding the right level of cover for a price you are willing to pay.

Discounts
Different insurance providers offer various insurance packages to suit a wide range of drivers and circumstances. A great way to save money on the premium is by qualifying for discounts. All insurance companies offer discounts. You might be eligible for discount simply through paying your premium online, having an adolescent driver in the household who gets good grades or by purchasing the house and auto insurance from the same provider. There are many other discounts on the cost of car insurance depending on the insurance it might pay to just ask them.

Remember that the simplest way to find low car insurance policy rates is to compare offers from multiple providers. Collect several quotes and you’ll be well on the way to finding a reasonable premium for an insurance policy that suits you.