How Are My Rates Determined?
The premiums you pay to insure your car can vary dramatically. Here are some of the factors that can influence how much you pay:

Your driving record. Your record plays a crucial role in determining premiums. If you’ve been involved in an accident that was determined to be your fault, or if you have traffic convictions on your record, you may pay more for your insurance. That’s because statistics indicate such drivers generally have repeat accidents or violations within three years. For drivers with poor records who cannot find coverage, there are state-regulated insurance plans called “assigned risk pools” or “shared markets.” In these plans, the state assigns a company to provide coverage for a high-risk driver.

The car you drive. Certain car models may be considered higher risk because they cost a lot to repair, are frequently involved in accidents, or are popular with car thieves. Owning one of these cars may double your collision and comprehensive premiums. High-performance cars and sports cars, for example, usually cost more to insure. Keep this in mind when shopping for a car, and remember, you can ask your insurance agent about insurance rates for specific cars before you buy.

Marital status. Statistically, young married drivers have fewer accidents than young single drivers, so they generally pay lower premiums.

Where you live. Rates are regulated on a state-by-state basis, so rates in California and Rhode Island will differ. Rates also vary between locations within a state. That’s because the risks—of accidents, theft and vandalism—vary significantly from one community to another. For example, people living in small towns generally have fewer auto accidents than people living in large cities, so they may pay less for insurance. Other variables include typical regional weather conditions and local auto repair prices.

Age. As a general rule, since drivers under age 25 have more accidents than older drivers, they pay more. Drivers between 50 and 65 years of age have low accident rates and are sometimes offered discounts. Past the age of 65, accidents seem to increase and rates generally begin to rise again. People over 70 may have trouble finding an insurer to accept them as a new customer, and when they do find coverage, it may be expensive.

Gender. A young man under age 25 generally pays more than a woman of the same age. This is because young men are involved in more accidents than young women and have more than three times as many fatal accidents.

Your family members. Insurance premiums not only reflect your age, gender and driving record, but those of other licensed drivers in your household as well. A teenage son who drives your car, or a spouse with a poor driving record will likely increase your insurance rates.

How Can I Save Money on Auto Insurance?
Here are some things you can do to help trim the cost of your auto insurance:

• Get quotes from at least three different companies to compare prices, features, and services.
• Choose a safe vehicle. Safety ratings can dramatically affect the price of insurance, so research the vehicle(s) you’re considering. See if the vehicle has a high accident
  rate or is popular with thieves. Crash test results are available from the National Highway Transportation Safety Authority.
• Increase your deductible if you know you can handle the out-of-pocket expense in the event of an accident. Increasing your deductible to $500, rather than the standard $250, will cut the cost of your insurance. But it will cost you an additional $250 out of pocket in the event of an accident.
• Consider dropping collision coverage, if your car is paid for. There comes a point when an aged auto’s book value is less than the cost of repairing it, and the most your insurer will pay is the car’s book value.
• Drive safely and responsibly. Obey the speed limits; don’t drink and drive, and always wear your seatbelt. A good driving record helps keep rates down.

The following discounts can cut costs. They are not, however, permitted in all states and are not offered by all insurance companies.

• Safe driver discounts. The definition of a safe driver varies, but usually includes those with no accidents or convictions on their records for the previous three years.
• Discounts for taking driver training, driver improvement, and/or defensive driving courses. You may qualify if you’ve recently taken an approved driver education course. The National Safety Council offers several courses in English and Spanish for both mature and teenaged drivers. See "For More Information."
• Mature driver discounts, for drivers between ages 50 and 65.
• Multi-car discounts, for those insuring more than one car with the same company.
• Multiple policy discounts, for buying more than one type of insurance (e.g., homeowners, auto, life) from the same company.
• Restricted mileage discounts, for those who drive less than 7,500 miles annually.
• Anti-lock brake discounts, for cars equipped with computerized anti-lock braking systems.
• Passive seat belt and air bag discounts are sometimes offered for cars equipped with factory-installed air bags and automatic seat belts.
• Anti-theft system discounts, for vehicles with devices that make them more difficult to steal—for example, ignition and fuel-cutoff systems, alarms, and hood- and  wheel-locking devices.
• Good-student discounts are sometimes offered for drivers under age 25 who have maintained a B average for the preceding semester in high school or college.