Auto insurance, we all need it yet many people are still clueless on what determines there insurance rate. The average auto insurance policy price is a result of a variety of factors. Many of these factors are common knowledge and make sense for the most part but it's in your best interest to learn exactly what info they use to base your policy on in hope of saving some money.

1)Driving Record – Your auto insurance policy price is a result of 6 major areas. The first is your driving record. The key thing to remember is the better your driving record 3the lower your total cost to insure your automobile. This would include auto accidents, speeding tickets and whether or not you’ve gone without car insurance for more than one year. The good thing is that you can directly control many of these factors by concentrating on keeping a clean driving record and this area shouldn’t cause your rates to be outrageously high.

2) Coverage Amount – Call your insurance company and see what impact raising and lowering your deductibles and coverage amount has on the price of your insurance. Raising a deductible lowers your monthly payment. Increasing the deductible has the opposite effect. The same goes for the actual coverage amounts.

3)Age of the driver – Studious have proven that younger drivers are more likely to be involved in more accidents then older drivers. The potential to be involved in a collision is a result of the drivers inexperience behind the wheel of an automobile. Most insurance companies charge more for individuals under the age of 25.

4) Vehicle Model and how much you drive it – A fancy new sports car you might want will effect your auto insurance policy price. The increase in rate in large part is do to theft, vehicular costs and safety records some cars rate a higher premium over other vehicles. As if that wasn’t bad enough the amount of the more miles you drive your car in a years time may cause an increase as well. The average mileage allotment insurance companies use is 10,000 miles in a year. If you exceed that total then you can expect a rate increase based on your increased potential to be involved in an auto accident.

5)Where you live– It’s a pretty safe bet that you’ll pay more for your auto insurance policy if you live in a big city when compared to a nice farm out in the country. The city probably has more thefts and accidents, which lead to higher costs absorbed by the insurance company and then passed along to the consumer when the insurance companies determine your auto insurance policy price.

Hopefully this information can help you focus in on some areas within your auto policy that you can review with your insurance agent in the hopes of actually lowering your auto insurance rates instead of raising them.

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