1. Driving Record – Your previous driving record is probably the biggest factor in your car insurance premiums.
2. Claim History – Your claim history as it relates to accidents or comprehensive claims in the past is another big factor in deciding your premium.
3. Type of Car – Of course, if you drive a 1969 Chevrolet Camaro Z28 with $30,000 worth of customization and no alarm system, your premium will be higher than if you drive a 2000 Ford Focus without any customization and a factory anti-theft device.
4. Your Age – Your age is a factor, and it is not discrimination. The older you become, the more driving experience you have. This is why they ask you the age when you were first licensed.
5. Coverage – Do you want the state minimum? Do you want to fully protect yourself in any possible situation that can be imagined by mankind? The more coverage you select, the higher your premium.
6. Deductibles – The higher your deductible, the lower your rate. The deductible is the amount you are responsible to pay in the event of a future claim. Low deductibles mean less out of pocket for you if you ever have an accident, but more out of pocket each month.
The Not So Obvious
1. Your Zip Code – Insurance premiums are partially based on your zip code. If you live in a high traffic area, such as New York City, you will pay a higher rate than if you live on top of a mountain in a town with a population of 100, like mine.
2. Your Credit – Most insurance companies view your credit history. Having no credit or poor credit puts you in a higher premium bracket.
3. Occupation – If you drive far to work, or drive for your job, you will pay a higher premium. The more you drive, the more likely you are to have an accident or other claim.
4. Coverage – How long have you been continuously covered by car insurance? Long gaps between policies may lead you to a higher rate.
5. Multiple Vehicles – Do you buy a car and drive it for a few months, then trade it in or buy another car? Dropping insurance coverage on one car and adding another one too often could increase your rates.
May Not Be Your Fault
1. Your Car – Again, your model of car and other people affect your rate. If your choice of vehicle has a high theft rate, you will pay more for your insurance premiums.
2. DUI Rate – The DUI rate in the county in which you live could affect your rate. The higher the rate, the higher your premiums.
3. Other People’s Accidents – If your particular make and model of car has been involved in a high number of accidents with other drivers, your premium could go up.
4. More About Other People’s Accidents – If your city or county has a high vehicular accident rate, you could pay higher premiums.
Other factors that are considered could be your cities vandalism rate, or overall crime rate. This could be calculated by county rather than city, depending on the insurance company and your state.