Your car insurance rate is determined by a number of factors, which include your driving record, the type of car you drive, your age, how your car is used and where you keep the car. It pays to take an in depth look at your car insurance situation often as changes that occur with insurance providers may significantly impact your car insurance rate. Here are some tips that will help you understand how these insurance rates are determined and what you can do to keep your auto insurance rates as low cost as possible.

Driving Record

Obviously, one of the main factors that determines the amount you pay for your car insurance is your driving record.  Items on your record like accidents and infractions add to the basic cost of your car insurance via a system of “points”.  Points can be categorized into 5 different areas, with some areas effecting your overall record more than others.

• Accidents - especially when you are substantially at fault and/or you cause significant damage to property or person.
• Minor infractions - basically any non-speeding violation like running a red light.
• Speeding - infraction for exceeding the speed limit.
• Major infraction - this is where there may have been a failure to report when involved in an accident.  Or it could be as serious as vehicular manslaughter or negligent homicide.  Also things like the committing a felonious act in which you car was used.  Reckless driving, trying to get away from a police officer are other major infractions.
• DUI/Non-DUI - driving while intoxicated or allowing an intoxicated person to operate you car, alcohol level test refusal, minor age person exposure to alcohol or open intoxication.

Type of Vehicle

The type and age of your car, the make and model of you car are factors that affect how much you pay for car insurance.  Newer, more expensive vehicles usually cost more to insure because the vehicles cost more to repair or replace if they are damaged.

Driver Age

The less experience you have at driving a car and/or the attitude you have has been shown to be statistically related to how old the driver is.  So, a younger driver is more apt to be involved in an accident or to be less responsible behind the wheel, therefore the car insurance rate will be higher.

Vehicle Usage

Whether the vehicle is used for pleasure, for short mileage, for long mileage, for business or for farming impacts the cost of your car insurance rate.

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