Auto insurance companies have “premiums judgment day” when you hand them your application. They essentially take a bunch of information about you and determine the amount of risk you represent. To be fair to the insurance companies, they aren’t just making these factors up. Their factors are based on statistics about drivers and common factors involved in accidents. So, in the particular case, you do not want to be represented as Mr. Dangerous. Here’s a little taste of some of the more common factors they look at.

The Factors

• How old are you really? Sometimes it sucks being young. It seems like no one trusts you. The auto insurance companies certainly don’t. Drivers under the age of 25 do get in more accidents than older drivers though. Those are the statistics talkin’, not me. So, chances are that if you’re a young ’un, they’ll jack up your premiums. You should get something for being old, right?
• Where you at? Where you live makes a major difference in your premiums. Anywhere there’s more traffic, more thefts, or more vandalism, there will be higher rates. If you live in an area where you are just as likely to find your car on cement blocks as to return with tires, your premiums will probably be higher. If your car sits in the middle of Tornado Alley, your premiums? Higher. Live in the boonies? Based solely on that, you’ll probably get a lower rate than someone who lives in the city.
• That’s a pretty big deductible. The bigger your deductible is, the lower your premiums will be because you are promising to take a bite out the price tag if bad things happen.
• Officer, is there a problem? Driving violations like speeding tickets, DUIs, or any others will also raise your rates. If you get pulled over so much that they already know your name before they get to the car, your rates will probably be higher. According to AllState, insurance companies can take up to five years of your driving history into account. So the longer you are driving violation free, the less you have to pay.
• It was an accident! The more accidents on your record, the more likely you are to have higher premiums. Sorry, Charlie, but you’ve already proven to be a bit of a risk. The more claims you’ve made, the more likely it seems that you will continue to make claims, costing the insurance companies money. They smack you with some added fees as a wag of the finger to stop messing up your car.
• The junker finally beats out the BMW. Some cars like sports cars are more likely to be driven irresponsibly than other cars, not to mention they cost more. More expensive cars are also more likely to be nabbed up by thieves than other cars. Therefore, insurance companies will charge you more for the added risk.

• Your credit score comes back with a vengeance. A good credit score can save you on insurance premiums. Auto insurance companies feel all warm and fuzzy inside when they see that you pay things like loans and credit card bills back. So, even if you are the most responsible person ever placed on this earth and your credit score does not reflect that, you are out of luck, even if it just means that you don’t even have a credit score.
• Positive sexism, ladies! Finally, a little sexism works in a woman’s favor. Women can get lower rates because statistics say that women are safer drivers.
• Give me the bulk discount. The more cars you have with one insurance company, the more likely they are to give you a discount for keeping all your cars with them. This can be a tad difficult if you have to switch, but overall, this can have a pretty sweet discount.
• The list goes on and on and on and on. The auto insurance companies seem like they have way too much time on their hands because there are just so many factors they consider when establishing your premiums. Job, education, car mileage, driving experience, theft protection, and driving distance are just a few more examples.

Don’t have a coronary trying to figure out the different things that affect your premiums. It can get fairly convoluted. Stick with the biggies. Act responsibly. Get experience. Drive safe.