Age/Years of Driving Experience. Youngest and oldest drivers are considered to be involved more likely in accidents. Usually, discounts are given to students who do well in their academics and those who are far away from their homes. New drivers are charged higher rates for their insurance. Premiums usually decrease once a person reaches 25 years old.

Marital Status. Single persons are likely to be charged more for insurance than married persons. Since married persons have more obligations aside from insurance, most insurance companies offer reasonable car insurance rates for them.

Miles Driven per Year. The car owner provides the insurance company a reasonable estimation of the average distance he/she would be traveling in one year. Those who have high annual mileage are charged by insurance companies higher because they have a high probability of being involved in an accident. To lower your insurance rate, one could opt to drive less, or use another mode of transportation.

The area where you live. If your home is located somewhere where population is dense and a lot of robbery is going on, then insurance companies would charge you higher, unlike if you are living in rural and not-so-populated areas. High population induces heavy traffic, and traffic increases the probability of getting into an accident, therefore, your insurance rates would be higher.

Driving Records. If you have good driving records and haven’t been involved in accidents, then expect to have discounts. But if you’ve got too many speeding tickets and haven’t been following traffic rules, then, expect to pay higher insurance rates. If you share a car with your family, you may avail of the multi-driver insurance discount. However, be reminded that combining policies also means a combined driving record, therefore, higher car insurance premiums.

Your Car. To put it simply, higher values mean higher rates. If you own a Ferrari, then you should be able (and ready) to pay for its insurance rates. Installing an anti-theft device to your vehicle would lessen its chances of being stolen. So, if you have one of those alarms in your car, then your chosen insurance company may give you a discount.

Credit Rating. In general, those who have high credit scores are expected to pay lower insurance rates than those who have low credit ratings.