A consumer’s gender, age, marital status, and driving record all have an effect on insurance premiums. For example, inexperienced younger drivers, especially those under 25-years-old, are a higher risk for insurance companies to carry and are therefore charged higher premiums. Two more examples would be the higher premiums due to statistics showing men generally aren’t as safe when driving as women and single drivers are more likely to be involved in an accident than married drivers. Above all, one of the most important personal factors in keeping premium rates low is having a driving record without traffic citations and accidents.

The price value and type of vehicle a driver is seeking to insure is one of the main factors used to determine insurance rates. Luxury, sporty, and convertible vehicles are usually much more expensive to insure than more conservative, safe, and smaller vehicles. The reasoning behind this is that luxury and sportier vehicles are not only more expensive, but are also more often targeted by thieves than other types.

The place a vehicle will be stored or parked is another factor that impacts insurance rates. Before setting a premium rate, an insurance company will often study the theft, vandalism, and accident rate for the consumer’s neighborhood. As a general rule, those living in rural areas will pay less than those living in urban areas.

How much driving is done will also raise or lower premium rates. Since drivers that have a lot of commute miles or that otherwise put a high amount of miles on their car have a higher probability of being involved in a vehicle accident, insurance companies tend to charge high-mileage drivers higher premiums. However, those that have short work commutes or that only place a limited amount of miles on their vehicle per year might be eligible for a discount from their insurer.

In closing, a driver can’t do much about certain premium factors like being male or female, but that doesn’t mean that there aren’t ways the driver can influence the cost of their premiums:

* Those in the market for a new car should review current consumer reports to see where all the vehicles under consideration rank in regard to reliability, safety, and theft before making a purchase.

* Ask the insurance company for a list of the discounts they offer – good student, good driver, senior citizen, multiple policy, going without a claim for a certain period of time, and so forth.

* Periodically shop around for a new policy that’s comparable in features and cheaper than an existing policy. It’s actually a fairly easy and quick process to change insurers.

* Consider carpooling or using public transportation to get to and from social events and work to become a low-mileage driver.

* Practice safe driving to stay free of accidents and traffic violations.