What Determines Auto Insurance Rates?

Filed in archive How to Buy on March 13, 2010

© Fabio Aro

If you want to keep your auto insurance rates reasonable, then you will have to work at it. Besides getting several auto insurance quotes and then comparing them for the best deal, there are other factors that enter into the price of your average car insurance rate.

Probably two of the most important factors are age and sex. If you are a young male driver under the age of 25, for instance, you will pay considerably more on your auto insurance than a young girl of the same age with a similar car.

In spite of this difference, there are several things that can be done to keep your rates lower, enabling you to get the cheap car insurance you want. Completing a driver's education course will help, and so will keeping your driving record clean.

The type of car you drive is another very important factor, too. If you are driving a sporty model, or one that is in high demand by thieves, you are going to have to pay more each month than someone who drives a more conservative car. In order to avoid unnecessarily higher rates, you will want to talk to your car insurance agent before buying.